Mumbai, Aug 12: Domestic equity markets traded lower in early deals on Wednesday as rising crude oil prices and continued geopolitical tensions weighed on investor sentiment.
The Sensex declined as much as 273 points, or 0.34 per cent, to 77,881, while the Nifty fell 81 points, or 0.33 per cent, to 24,390 during morning trade.
Sectoral performance remained mixed. Nifty Metal emerged as the top gainer, rising 0.86 per cent, while Nifty PSU Bank advanced 0.60 per cent and Nifty Auto gained 0.23 per cent.
On the other hand, Nifty FMCG declined 0.64 per cent, followed by Nifty Realty, which fell 0.58 per cent. The Nifty Healthcare Index slipped 0.41 per cent, while Nifty IT declined 0.38 per cent.
Market experts said the benchmark indices were moving in a narrow range as elevated crude prices and geopolitical uncertainty continued to limit the possibility of an upside breakout.
According to market experts, the key factor weighing on sentiment is the strengthening of Brent crude, which has once again moved above the $89-per-barrel level. Ongoing tensions involving the US and Iran, along with uncertainty surrounding the reopening of the Strait of Hormuz, could keep crude prices elevated and add pressure to equity markets.
Brent crude was trading around 1 per cent higher at $89.87 per barrel, while US West Texas Intermediate (WTI) crude rose 1.14 per cent to $84.14 per barrel.
Despite the near-term pressure, India’s growth outlook remains a positive factor for investors. A recent SBI report has projected FY27 GDP growth at 8 per cent, significantly higher than the RBI’s 6.7 per cent estimate. Stronger-than-expected economic growth could support corporate earnings and provide a positive backdrop for equities.
Global markets also presented a mixed picture. Japan’s Nikkei traded marginally higher in early trade, while Hong Kong’s Hang Seng declined around 1 per cent. South Korea’s KOSPI gained more than 4 per cent.
Overnight, US equities closed lower, with the Nasdaq declining 0.60 per cent and the S&P 500 falling 0.32 per cent.
Market participants are likely to closely track crude oil movements, geopolitical developments, global market cues and domestic growth indicators for further direction in the trading session.