Sensex and Nifty Open Flat as Crude Prices Ease Amid Geopolitical Tensions

The BSE Sensex and Nifty indices opened flat on Thursday, despite a decline in crude oil prices. The Sensex rose by as much as 103.82 points or 0.13% at the opening bell but later pared gains to trade down 37.73 points or 0.05%. The Nifty 50 also gained initially but slipped back to almost flat levels. Oil prices eased after Iran announced it was working with Oman to finalize details of an agreement concerning the Strait of Hormuz, raising hopes that the key waterway could reopen.

Iran's move helped ease concerns over prolonged disruptions to Middle East oil supplies. Brent crude fell 0.46% to $87.44 a barrel, while WTI crude dropped 0.47% to $81.84. The news also lifted sentiment across Asian technology stocks after Nvidia reported stronger-than-expected quarterly results.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, warned that geopolitical tensions remain a key risk for equities. He noted that both the US-Iran situation and renewed escalation in the Russia-Ukraine conflict are weighing on markets. Vijayakumar also pointed out that valuations in mid- and small-cap segments have become stretched.