India's Stocks Dragged Down by Soaring Brent Crude Prices
India's stock markets opened in red on September 7, as Brent crude prices surged to fresh highs amid heightened tensions in West Asia and concerns over US interest rates. The BSE Sensex fell by 107.38 points or 0.14% to stand at 76,408.05 points, while the NSE Nifty 50 traded at 23,883.15 points, down 14.55 points or 0.06%.
Brent crude rose by USD 0.74 (0.77%) to USD 97.02, with Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, attributing the surge to geopolitical conflict in West Asia.
The situation escalated over the weekend, as the US struck three Iranian oil tankers anchored off Iran's coast in response to Tehran firing ballistic missiles at American warships. Iran's Revolutionary Guard claimed attacks on three tankers using what it called an unauthorized route through the strait, along with US-affiliated vessels.
Rajesh Palviya, Head of Research at Axis Direct, noted that the near-term bias remains cautious, with the index struggling below the crucial 24,000-24,150 zone. He highlighted key support zones, including 23,800, followed by 23,700 and 23,600.
Vikram Kasat, Chief Business Officer, Advisory and Dealing at PL Capital, warned that weak Wall Street cues, fear of a rate hike in the US, and uncertainty in the Middle East may lead to further consolidation in stocks. He mentioned that participants may watch for SEBI's review of CAS closing, FED meet outcome, and developments in the Middle East.