Sensex opens 439 points lower, Nifty slips below 24,600 as oil prices surge

Mumbai (Maharashtra) [India], August 7 (ANI): The Indian benchmark indices opened with a gap-down on Friday, with Sensex losing over 400 points and Nifty sliding below the 24,600 level as oil prices surged amid renewed concerns over the Strait of Hormuz.
Nifty opened at 24,538.90 against the previous close of 24,636 and was trading at around 24,596.05, down 39.95 points or 0.16 per cent at the time of reporting. Likewise, Sensex opened lower at 78,516.08 (down 438.68 points) against the previous close of 78,954.76 and was trading at around 78,709.63, down 245.13 points or 0.31 per cent at the same time.
Sectorally, most indices traded in the red; however, auto, FMCG, IT, realty, oil & gas traded in the green. Broad market indices remained largely mixed.
On BSE, TCS, Tech Mahindra, HCL Tech, BEL, NTPC, Infosys, Indi Go, Adani Ports, Titan, ITC, among others, were the top gainers while Bajaj Finance, Trent, Axis Bank, Eternal, Asian Paints, SBI, Tata Steel, among others, were the top drags.
Similarly, on NSE, TCS, Tech Mahindra, HCL Tech, BEL, M&M, Wipro, ONGC, NTPC, Hindustan Unilever, Eternal, Reliance, Sun Pharma, among others, were the top gainers, whereas Trent, Grasim, Coal India, Axis Bank, Kotak Bank, Tata Steel, JSW Steel, among others, were the top losers during the early morning trade.
In the commodity market, Brent crude was trading at around USD 83.40 per barrel while crude oil was trading at around USD 78.06.
Market analyst Vipin Dixena noted, "Market is showing signs of consolidation after the recent move, indicating that investors are taking time to digest key developments before building fresh positions. Rather than witnessing broad-based participation, the market is rewarding selective buying, suggesting that conviction remains stronger in individual stocks than in the benchmark indices."
While, Nifty has opened above its immediate support of 24,500 levels, reflecting resilience, the index needs to sustain above its recent swing high of 24,650 levels to confirm a fresh breakout, as per Dixena. "Until then, I expect the market to remain range-bound with a positive bias, where buying on declines is likely to be a more prudent strategy than chasing sharp rallies," he said.
Rajesh Palviya, Head of Research, Axis Direct noted, "Asian markets are trading subdued this morning, with Japanese equities extending their technology-led decline. Brent crude has climbed above $83 per barrel following fresh geopolitical tensions near the Strait of Hormuz, posing a potential risk for India as a major crude importer. Gold is holding steady near USD 4,280, while GIFT Nifty is indicating a flat start around the 24,650 mark."
Technically, Palviya noted, the market continues to exhibit a cautious undertone as long as the Nifty remains below the 24,800 level.
"A sustained move above this hurdle could pave the way towards the 25,000 mark. On the downside, immediate support is placed in the 24,500-24,400 zone, with a breach potentially dragging the index towards 24,300. Investors will closely monitor the US July payrolls data later today for directional cues, while any easing in crude oil prices could provide fresh momentum for the ongoing recovery," said Palviya.
Manav Modi Commodities Analyst Motilal Oswal Financial services Ltd, noted, "Gold prices traded largely unchanged on Friday as investors balanced renewed geopolitical tensions in the Middle East against hopes for a diplomatic resolution, while awaiting the U.S. non-farm payrolls report for fresh clues on the Federal Reserve's interest rate outlook."
At the time of reporting, the precious metal was trading at around USD 4,265.38.
Noting additional attacks by Yemen's Houthi movement on Saudi-backed forces kept geopolitical risks elevated and supported safe-haven demand, Modi stressed, "concerns that renewed disruptions could push oil prices higher and reignite inflation tempered gains, reinforcing expectations that the Federal Reserve may keep interest rates elevated for longer. Markets currently assign around a 60% probability of a September rate hike, while the U.S. Dollar Index remained stable near the 100 mark, offering limited direction to bullion." (ANI)