India's Equity Markets Slide Amid Rising Crude Prices and Geopolitical Tensions

Domestic equity markets in India traded lower on Wednesday due to rising crude oil prices and ongoing geopolitical tensions. The Sensex declined by as much as 0.34% or 273 points, hitting an intraday low during morning trade, while the Nifty decreased by 81 points or 0.33% to 24,390.

The sectoral indices showed mixed performance, with Nifty Metal being the top gainer and rising 0.86%, followed by Nifty PSU Bank at 0.60%. However, Nifty FMCG fell 0.64%, while Nifty Realty dropped 0.58% and Nifty Healthcare Index declined 0.41%. The IT sector also suffered a loss of 0.38%.

Market experts pointed out that the benchmarks were moving sideways due to the strengthening Brent crude, which surpassed the $89 level again. They noted that intermittent US-Iran skirmishes and Iran's hardening stance on reopening the Strait of Hormuz could keep crude prices elevated and limit market growth.

Despite these challenges, India's growth outlook is improving, with the SBI report projecting FY27 GDP growth at 8%, compared to the RBI's estimate of 6.7%. If this forecast turns out to be true, corporate earnings for FY27 are expected to be better-than-expected.