Mumbai: Indian equity markets witnessed a sharp decline on Thursday morning, reflecting cautious investor sentiment amid uncertain global developments. The benchmark BSE Sensex dropped over 650 points, while the Nifty 50 slipped by around 175 points in early trade.
The downturn comes as global markets remain unsettled, largely due to stalled diplomatic progress between the United States and Iran. The lack of clarity on any potential agreement has added to investor anxiety, prompting a risk-off approach across financial markets.
At the opening bell, the indices recorded even steeper losses, with the Sensex falling more than 750 points and the Nifty declining close to 200 points before recovering slightly. Market participants appeared cautious, with selling pressure seen across multiple sectors.
Adding to the pressure, crude oil prices moved higher, raising concerns about inflation and economic stability, particularly for import-dependent economies like India. Rising oil prices often weigh on market sentiment, as they can increase input costs for industries and impact fiscal balances.
The Indian rupee also weakened in early trade, opening about 20 paise lower against the US dollar at 94.00, reflecting broader pressure on emerging market currencies.
Analysts said that until there is more clarity on global geopolitical developments, especially in West Asia, markets are likely to remain volatile. Investors are expected to stay cautious, tracking both international cues and domestic economic indicators closely.
