Indian stock markets opened sharply lower on Thursday, following a global sell-off triggered by escalating tensions in the Middle East and soaring oil prices. The benchmark Sensex plunged over 1,200 points to open at 83,002.09, while the Nifty50 index dropped nearly 350 points to start the day at 25,452.85.
Iran’s missile strikes on Israel earlier this week have heightened geopolitical risks, pushing Brent crude oil prices above $74 per barrel. “The spike in oil prices amid Middle East tensions is weighing on market sentiment,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
The sell-off was broad-based, with most sectors trading in the red. Auto stocks faced significant pressure despite strong September sales numbers. Eicher Motors led the losers pack, falling 2.29 per cent, followed by BPCL (-2.24 per cent), Asian Paints (-1.90 per cent), Wipro (-1.88 per cent), and Tata Motors (-1.85 per cent).
Only a handful of stocks managed to buck the trend. JSW Steel emerged as the top gainer, rising 2.40 per cent, followed by ONGC (1.66 per cent), Tata Steel (1.32 per cent), Adani Enterprises (0.14 per cent), and NTPC (0.11 per cent).
Foreign institutional investors (FIIs) continued their selling spree, offloading equities worth ₹5,579 crore on October 1, while domestic institutional investors bought shares worth ₹4,609 crore, as per provisional data.
“FII selling pressure and the cautious stance ahead of the US non-farm payroll data due on Friday are adding to market volatility,” noted Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
The India VIX, a measure of market volatility, was trading at 11.98, down 6.26 per cent from the previous close, indicating some easing of fear among investors.
On the macro front, India’s Goods and Services Tax (GST) collection growth in September hit a 40-month low of 6.5 per cent, raising concerns about economic growth. Additionally, the Manufacturing PMI for September fell to an 8-month low, further dampening sentiment.
Global markets presented a mixed picture. While US stocks closed marginally higher overnight, Asian markets were trading mixed, with Hong Kong’s Hang Seng index falling over 3 per cent on profit-taking. Japan’s Nikkei, however, surged more than 2 per cent on a weaker yen.
“The market is likely to remain volatile in the near term due to geopolitical uncertainties and upcoming corporate earnings,” said Ameya Ranadive, Sr Technical Analyst at StoxBox.
Analysts suggest a cautious approach given the current market conditions. “Traders with long positions are advised to book profits near resistance zones and wait for dips to re-enter buying positions,” recommended Hardik Matalia, Derivative Analyst at Choice Broking.
On the technical front, Nifty faces immediate resistance at 25,850, while support is seen at 25,550. “For the market to sustain a bullish outlook, it must hold above the 26,000 level,” added Vikas Jain, Head of Research at Reliance Securities.
As the situation in the Middle East remains fluid, investors are closely watching for any signs of de-escalation or further conflict. The market’s direction in the coming days will likely be determined by geopolitical developments, global cues, and domestic economic indicators.
