Sensex Plunges 300 Points as Crude Prices Rise Amid Geopolitical Tensions

India's stock market opened lower on Tuesday, August 18, with the Sensex plummeting over 300 points and the Nifty dipping below 24,300. The downturn was largely attributed to rising crude oil prices and escalating geopolitical tensions.

The Brent crude price surged above USD 91 per barrel, while West Texas Intermediate (WTI) crude crossed USD 85 per barrel. This has raised concerns about possible disruptions to global energy supplies.

Market analyst Vipin Dixena noted that the Nifty had declined for five consecutive sessions and that foreign institutional investor selling remained a concern. However, strong buying by domestic institutional investors and the recovery from Monday's intraday lows suggested that domestic investors continued to provide some support to the market.

Dixena also pointed out that the 24,200 level was an important support zone for the Nifty. He added that if the index manages to break above the 24,360-24,400 hurdle, it could bring some recovery momentum back into the index.