Sensex, Nifty slide as Iran-US tensions fuel oil surge, global market selloff

Indian equity benchmarks opened sharply lower on Thursday, tracking weakness across global markets as escalating tensions between the United States and Iran pushed crude oil prices higher and dampened investor sentiment.

The BSE Sensex fell 358.54 points to 73,624.64 in early trade, while the NSE Nifty dropped 117 points to 23,098.30.

Technology stocks led the decline, with HCLTech, Infosys, Tech Mahindra and Tata Consultancy Services among the biggest laggards. Eternal and Trent also traded lower. On the other hand, Power Grid, ICICI Bank, Bharti Airtel and InterGlobe Aviation provided some support to the market.

Investor concerns intensified after Brent crude, the global oil benchmark, jumped 1.7 per cent to USD 94.68 per barrel amid fears that the latest US military action against Iranian targets could trigger a broader regional conflict and disrupt energy supplies.

"Fresh military action by the United States against Iranian targets has reignited concerns over the stability of the Middle East, raising fears that recent diplomatic efforts may be losing momentum and increasing the risk of a broader regional conflict," said Ponmudi R, CEO of Enrich Money.

He added that the latest US inflation data, while broadly in line with expectations, showed consumer prices rising to their highest level in three years, further weighing on market sentiment.

Foreign institutional investors remained net sellers, offloading equities worth Rs 2,124.98 crore on Wednesday, adding to pressure on domestic markets.

The cautious mood mirrored global trends. Asian markets, including Japan's Nikkei, South Korea's Kospi, China's Shanghai Composite and Hong Kong's Hang Seng, traded lower, while Wall Street suffered a sharp selloff overnight.

"Wall Street witnessed a sharp correction overnight, with the Dow Jones falling more than 950 points. Investors moved away from risk assets amid fears that escalating geopolitical tensions could disrupt energy markets and keep inflationary pressures elevated," said Hariprasad K, Founder of Livelong Wealth.

He warned that rising crude prices pose a significant risk for India.

"For Indian markets, the biggest concern remains crude oil. Higher oil prices threaten India's inflation trajectory, corporate margins, fiscal balance and the rupee," he said.

The decline comes a day after the Sensex ended marginally higher by 64.42 points at 73,983.18, while the Nifty slipped 27.15 points to close at 23,214.95, reflecting growing investor caution amid an increasingly uncertain global backdrop.

With PTI inputs