Mumbai, March 12:
Indian equity markets are expected to open lower on Thursday as global crude oil prices surged toward $100 per barrel following attacks on oil tankers in Iraqi waters, triggering declines across Asian and US markets and dampening investor sentiment.
Early indicators showed weakness in domestic equities. The GIFT Nifty, a futures contract linked to the Nifty 50, fell about 115 points to around the 23,780 level, suggesting a negative opening for Dalal Street. In the previous session, the Nifty 50 had dropped 1.6% to close at 23,866, while the BSE Sensex plunged more than 1,300 points to settle slightly above 76,863. The decline wiped out nearly ₹3.2 lakh crore in market capitalisation among companies in the Nifty 50 index.
Global markets also slipped as investors reacted to rising geopolitical risks and volatility in energy markets. Japan’s Nikkei 225 fell about 1.1% to near 54,400 while the broader Topix index dropped 1.3%. South Korea’s Kospi declined more than 1%, Australia’s S&P/ASX 200 fell about 1.5%, Hong Kong’s Hang Seng slid around 0.6%, and China’s CSI 300 was down roughly 0.3%.
Oil markets reacted sharply after two vessels — the Marshall Islands-flagged Safesea Vishnu and the Malta-flagged Zefyros — were attacked near Iraqi loading zones, forcing the country to suspend operations at its oil terminals. Brent crude briefly climbed to around $100 per barrel, while US benchmark West Texas Intermediate rose close to $95.
The International Energy Agency announced the largest emergency release of strategic oil reserves in history in an attempt to stabilize supply, but traders remain uncertain whether the move will offset the supply shock created by the escalating conflict in the Middle East.
Wall Street ended mixed overnight. The Dow Jones Industrial Average fell 289.24 points to 47,417.27, while the S&P 500 slipped 0.08% to 6,775.80. The Nasdaq Composite edged up 0.08% to close at 22,716.13.
Key Facts
Oil Prices
Brent crude near $100 per barrel
WTI crude around $95
Market Indicators
GIFT Nifty down 115 points (~23,780)
Nifty 50 previous close 23,866 (-1.6%)
Sensex fell over 1,300 points
Market Impact
₹3.2 lakh crore erased from Nifty 50 market cap
Global Market Moves
Nikkei 225: -1.1%
Topix: -1.3%
Hang Seng: -0.6%
CSI 300: -0.3%
ASX 200: -1.5%.
Analysts expect continued volatility in equities as geopolitical tensions, foreign fund outflows, and oil price swings influence investor sentiment. Market participants are also watching sectors such as defence, which have remained relatively resilient amid expectations of higher global military spending, while rising volatility may delay several planned initial public offerings.
