- Indian equities opened lower amid global market weakness.
- Asian and US markets also fell, impacting investor sentiment.
- Elevated crude oil prices intensify India’s inflation concerns.
Indian equity benchmarks opened on a muted note on Monday, October 26, as weakness across global markets and persistently high crude oil prices weighed on investor sentiment. Although oil prices eased in early trade, Brent crude remained elevated amid continuing tensions in West Asia, keeping inflation risks on investors’ radar.
The BSE Sensex bled 300 points and opened under 72,850, while the NSE Nifty50 tanked more than 100 points and breached 22,500, as of 9:15 AM.
GIFT Nifty Signals Weak Start For Dalal Street
GIFT Nifty indicated a subdued opening for domestic equities, with futures quoted at 22,601.50, down 6.50 points.
At around 9:06 am, the Sensex was trading at 73,104.01, down 19.82 points, or 0.03 per cent. The Nifty stood at 22,538.85, declining 61.35 points, or 0.27 per cent.
Investors are expected to track global market movements, fluctuations in crude oil prices and developments in West Asia during the session. Persistently elevated energy costs could also influence inflation expectations and the outlook for India’s economy.
Asian Markets Trade Lower Amid West Asia Tensions
Asian equities were largely in the red on Monday as investors remained cautious amid geopolitical uncertainty and elevated oil prices.
Japan’s Nikkei 225 declined 0.34 per cent, while South Korea’s Kospi fell 1.25 per cent.
The weakness across regional markets added to the cautious mood ahead of the domestic trading session, with investors assessing the potential economic implications of sustained energy price pressures.
Wall Street Ends Lower Across Major Indices
US equities also finished lower in the previous session, with all three major benchmarks recording losses.
The Dow Jones Industrial Average declined 1.23 per cent, while the S&P 500 fell 0.52 per cent. The Nasdaq Composite ended 0.21 per cent lower.
The weak finish on Wall Street, combined with declines across Asian markets, contributed to the subdued outlook for Indian equities at the start of the week.
Crude Oil Eases But Brent Remains Above $115
Crude oil prices retreated in early trade on Monday but continued to hover at elevated levels amid concerns over supplies from West Asia.
Brent crude fell 1.39 per cent to $115.10 per barrel, while West Texas Intermediate (WTI) declined 1.76 per cent to $101.50 per barrel.
Brent crude had touched a six-month high last week before retreating.
For India, which relies heavily on imported crude, persistently high oil prices pose a risk to inflation, the import bill and the rupee. Higher energy costs can also affect the margins of oil-sensitive sectors, particularly when companies are unable to pass on the full increase to consumers.
Gold And Silver Futures Edge Lower
Precious metals also traded in negative territory in early deals.
Gold futures declined 0.30 per cent, while silver futures slipped 0.39 per cent.
Investors will continue to assess movements in global commodity markets alongside geopolitical developments and broader financial market trends.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
