Sensex and Nifty trade flat as crude above $100 dampens investor sentiment

Indian benchmark indices traded within a narrow range in early deals on Thursday as crude oil prices remained above $100 a barrel amid continuing geopolitical tensions.

The 30-share BSE Sensex edged up 38.07 points to 74,809.95, while the broader NSE Nifty gained 9.85 points to trade at 23,439.20.

Tech Mahindra, Axis Bank, State Bank of India, Power Grid, ITC and Infosys were among the leading gainers on the Sensex.

Mahindra & Mahindra, Adani Ports, Reliance Industries, Sun Pharma, InterGlobe Aviation and Bharat Electronics were among the major laggards.

Brent crude, the international oil benchmark, declined 0.20 per cent but remained elevated at $101 a barrel.

Ponmudi R, chief executive officer of online trading and wealth-technology firm Enrich Money, said persistently high oil prices and rising US Treasury yields were expected to maintain pressure on Indian equities as geopolitical tensions clouded the global economic outlook.

The combination of expensive energy and firm bond yields could weaken demand for riskier assets and affect emerging markets, including India, he added.

Ponmudi said uncertainty over the prospects for de-escalation in the conflict with Iran was keeping investors cautious and sustaining a geopolitical risk premium in energy prices. Market participants will also monitor forthcoming US inflation data for indications of the Federal Reserve’s future monetary policy.

Elsewhere in Asia, South Korea’s Kospi, Japan’s Nikkei 225, China’s Shanghai Composite and Hong Kong’s Hang Seng traded lower. US markets also closed in negative territory on Wednesday.

Foreign institutional investors sold Indian equities worth ₹582.99 crore on Wednesday, according to exchange data.

In the previous session, the Sensex plunged 813.35 points, or 1.08 per cent, to close at the day’s low of 74,764.23. The Nifty fell 203.60 points, or 0.86 per cent, to settle at 23,431.50.

With PTI inputs