Indian markets slip: Sensex drops 400 points amid global uncertainty

Mumbai (The Uttam Hindu): Indian stock markets opened in the red on Thursday, tracking weak global cues after a strong rally the previous day. The decline came after Iran accused the US of violating a ceasefire agreement, leading to a fresh surge in crude oil prices, leading to declines in the Nifty50 and Sensex.

Meanwhile, the BSE Sensex opened at 77,319.33, down 243.57 points from its previous close of 77,562.90, while the Nifty opened at 23,909.05, down 88.3 points from its previous close of 23,997.35. However, at the time of writing this news (around 9:40 am), the Sensex was trading at 77,118.49, down 444.41 points or 0.57 percent, while the Nifty50 was down 101.45 points or 0.42 percent at 23,895.90.

In the broader market, the Nifty Midcap index fell 0.13 percent, and the Nifty Smallcap index fell marginally by 0.02 percent. Sectorally, Nifty Metal and Nifty Pharma outperformed, while Nifty IT fell the most (1.17 percent). Nifty Auto, Nifty Financial, Nifty Bank, and Nifty Realty also declined.

In the Nifty 50 index, shares of Infosys, L&T, Eternal, Jio Financial Services, HCL Tech, Indigo and Shriram Finance were among the biggest losers, while on the contrary, shares of Hindalco, MaxHealth, NTPC, Bajaj Auto, BEL and Powergrid saw the biggest gains.

Meanwhile, Brent crude futures rose 3.31 percent to $97.89 a barrel in the morning. Meanwhile, US West Texas Intermediate (WTI) crude was trading at $98.38, up 4.2 percent from its previous close.

While US President Donald Trump announced a ceasefire earlier this week, the situation in the Middle East remains extremely fragile. On Wednesday, Israel launched its deadliest attack yet on Lebanon, killing hundreds, and Iran issued a fresh threat of retaliation, dashing hopes of a lasting de-escalation and sending global markets into a tailspin.

Adding to the uncertainty, Iran's chief negotiator and parliament speaker, Mohammad Bagher Qalibaf, indicated that continuing talks with the US aimed at a lasting peace agreement may now be "inappropriate." In contrast, the White House stated that direct talks with Iran would continue.

Meanwhile, Tehran accused Israel of violating the ceasefire, continued its attacks on Gulf countries, and the Strait of Hormuz remained largely blocked despite earlier assurances of safe passage. This remains a major concern for financial markets, as the waterway is a vital route for global oil supplies. Any disruption there could rekindle inflation concerns.