Noida, Apr 9 (APAC Media): Indian equity markets opened on a cautious note on Thursday, with benchmark indices retreating after a strong rally in the previous session.
Investor sentiment turned fragile amid rising geopolitical tensions following reports that Israel had launched an attack on Lebanon’s Hezbollah, sparking concerns about potential disruption in the strategically important Strait of Hormuz.
The BSE Sensex dropped 560 points, or 0.72 per cent, to trade at 77,003, hitting an intra-day low in early deals. Similarly, the Nifty 50 declined 182 points, or 0.75 per cent, to 23,815.
The decline was broad-based, with IT, realty, banking, and auto stocks emerging as the top laggards, each slipping up to 1 per cent.
Among individual stocks, Infosys, Shriram Finance, HCL Tech, Bajaj Finance, IndiGo, Tech Mahindra, Axis Bank, and Mahindra & Mahindra were among the major losers on the Nifty index.
Market participants remained cautious as geopolitical risks drove a surge in crude oil prices. Brent crude futures jumped over 3 per cent to $97.89 per barrel, while US West Texas Intermediate (WTI) crude rose more than 4 per cent to $98.38.
Analysts warn that sustained high crude prices could weigh on inflation and India’s fiscal balance.
Experts advise investors to adopt a “buy on dips” strategy near key support levels while avoiding aggressive long positions at elevated valuations. They also highlighted the continued divergence between foreign institutional investors (FIIs) and domestic institutional investors (DIIs).
On Wednesday, FIIs were net sellers of approximately Rs 2,812 crore, whereas DIIs remained strong buyers with inflows of about Rs 4,168 crore.
Meanwhile, the India VIX cooled to around 19.69, suggesting easing volatility, though intraday swings may persist. Broader Asian markets also traded lower, while Wall Street had ended the previous session with gains of over 2 per cent across major indices.
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