Markets trade lower as rising crude prices, geopolitical tensions weigh on sentiment

Indian stock indices slipped during Wednesday’s opening session, pressured by higher crude oil prices and ongoing geopolitical unrest.

The Sensex dropped roughly 0.34 % (about 273 points) to 77,881, touching an intraday low, while the Nifty fell 81 points or 0.33 % to 24,390.

Sector‑wise, the Nifty Metal index led gains, advancing 0.86 %, followed by the Nifty PSU Bank index which rose 0.60 %. The Nifty Auto index also edged up 0.23 %.

On the weaker side, the Nifty FMCG index declined 0.64 %, the Nifty Realty index slipped 0.58 % and the Nifty Healthcare index fell 0.41 %. The Nifty IT index was down 0.38 %.

Analysts noted that the benchmarks are trading in a range, as climbing crude prices and geopolitical tension are preventing a decisive upward move.

“The market is struggling to break higher and is moving sideways. The main obstacle is the firm Brent crude, which has pushed back above the $89‑per‑barrel mark,” they explained.

They added that occasional US‑Iran confrontations—including the recent strike on a Panama‑flagged container ship—and Tehran’s tough stance on reopening the Strait of Hormuz could keep oil prices elevated and cap market upside.

On the brighter note, India’s growth prospects are improving; the latest SBI report forecasts FY27 GDP expansion at 8 %, outpacing the RBI’s 6.7 % projection.

“If that materialises, FY27 corporate earnings could exceed expectations, providing a bullish boost,” the experts remarked.

Furthermore, the international Brent crude benchmark traded around 1 % higher at $89.87 per barrel, while US WTI crude rose 1.14 % to $84.14 per barrel.

Asian markets showed mixed moves: the Nikkei edged up marginally in early trade, the Hang Seng slipped about 1 %, and the KOSPI jumped more than 4 %.

U.S. equities closed lower on Tuesday night, with the Nasdaq down 0.6 % and the S&P 500 off 0.32 %.