Indian Markets Open Red Amid Rising Brent Crude Prices

The Indian markets started the week in red due to rising Brent crude prices amid heightened geopolitical tensions in West Asia and concerns over US interest rates. The BSE Sensex stood at 76,408.05 points, shedding 107.38 points, or 0.14 per cent, while the NSE Nifty 50 traded at 23,883.15 points, down 14.55 points, or 0.06 per cent.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, said that Brent crude has risen by about 10% last week and is now trading near USD 96.50 this morning. The weekend saw the US strike three Iranian oil tankers anchored off Iran's coast in response to Tehran firing ballistic missiles at American warships.

Banerjee noted that on Sunday, Iran's top security official announced plans to declare a restricted zone in the coming days, beginning at the US naval blockade line and extending into the Gulf. He also mentioned that OPEC+ producers held October output at September levels, resulting in no incremental barrels from that quarter.

The surge in crude prices has put pressure on domestic equities, with GIFT Nifty trading at 23,950.00 points, lower by 60.00 points. Rajesh Palviya, Head of Research at Axis Direct, said that the near-term bias remains cautious and immediate support is placed at 23,800, followed by 23,700 and 23,600.