Sensex slips over 360 pts, Nifty below 24,300 as geopolitical tensions push crude prices higher

Mumbai (Maharashtra), [India] July 8 (ANI): Indian markets opened on a weak note on Wednesday as oil prices surged on renewed escalations in the US-Iran conflict. Both the benchmark indices opened with a gap-down with most sectoral indices trading in the negative territory.
Sensex opened at 77,816.45 as against the previous close of 78,180.72. Nifty opened at 24,259.55 as against previous close of 24,398.70. At the time of writing this article, Sensex was trading at 77,815.77, down 364.95 points or 0.47 per cent while Nifty was trading at 24,279.05, down 119.65 points or 0.49 per cent.
Sectorally, most indices traded in the red with Nifty Oil & Gas emerging as the major laggard, dropping 1.34 per cent in the early morning trade while Nifty Pharma and Healthcare traded in green.
On BSE, Sun Pharma, Infosys, Power Grid, TCS, Tech Mahindra and ICICI Bank traded in the positive territory. On the other hand, Indi Go, Asian Paint, M&M, Maruti, Tata Steel, Eternal among others were major losers.
In the commodity market, Brent crude was trading higher at USD 76.03/barrel at the time of writing this article. The yellow metal prices however slipped as U.S. strikes on Iran lifted oil prices and strengthened the dollar. Gold was trading at USD 4,123.57 at the time of writing this piece.
Market expert Ajay Bagga noted, "The simultaneous surge in the US dollar index and Brent crude typically forces foreign institutional investors to de-risk, which will likely accelerate FII/FPI capital outflows and trigger substantial short additions in index futures."
As per Bagga, "Domestic liquidity will face a major litmus test today as retail investors and Domestic Institutional Investors (DIIs) decide whether to courageously buy the dip or step back entirely in the face of escalating West Asian tensions."
He further noted "FPI playbook right now is tactical capital preservation: shorting the index futures to hedge existing equity risk, pausing fresh fixed-income duration bets, and awaiting clarity on how sticky this crude spike proves to be."
Rajesh Palviya, Head of Research, Axis Direct said "Global sentiment has weakened after a sharp overnight sell-off on Wall Street, led by technology and semiconductor stocks, while Asian markets are also trading lower. Brent crude has inched up to around $75 per barrel amid renewed geopolitical tensions, adding to investor caution."
"The near-term outlook remains cautious as long as the Nifty trades below the 24,450 resistance level. Immediate support is placed at 24,200, and a breach of this level could accelerate selling towards the key 24,000 mark. On the upside, a sustained move above 24,450 would improve sentiment and open the door for a recovery towards 24,600. Investors will closely track global market trends, crude oil prices and the performance of technology stocks, which are likely to set the tone for domestic markets in the near term," he added. (ANI)