Indian Equity Market Falls Amid Middle East Tensions and Higher Oil Prices
The Indian equity market, represented by the Nifty 50 and Sensex indices, declined on Tuesday due to persistent Middle East tensions and elevated crude oil prices. At 10:49 a.m. IST, the Nifty 50 was down 88.75 points, or 0.37 per cent, at 23,690.40, while the BSE Sensex fell 364.57 points, or 0.48 per cent, to 75,768.24.
The weakness in the market followed the benchmarks' six-week lows recorded in the previous session. Renewed hostilities between the U.S. and Iran have increased concerns over the stability of energy infrastructure and shipping routes across the Gulf, keeping investors cautious. Brent crude futures rose around 0.6 per cent to nearly USD 98 per barrel, increasing pressure on oil-importing economies such as India.
The Indian economy imports around 85 per cent of its crude oil requirements, making it particularly sensitive to a sustained rise in global oil prices. Higher crude prices and renewed U.S.-Iran tensions were keeping risk appetite subdued, with Hitesh Tailor, Technical Research Analyst at Choice Broking, saying the Nifty 50 could remain volatile around key support levels.