Stock market today: Crude oil price, West Asia tensions keep Sensex, Nifty in red

Equity benchmark indices opened lower on Wednesday, with elevated crude oil prices, uncertainty over the West Asia conflict and rising global bond yields weighing on investor sentiment. The cautious start came after six straight sessions of losses for the Nifty 50, as pressure on risk assets persisted.

As of 9:52 am, the BSE Sensex was down 138 points, or 0.18%, at 77,097, while the Nifty 50 fell 57 points to 24,098. The Sensex opened at 77,218.05 and the Nifty at 24,152.05. The Nifty has now fallen for six consecutive sessions, losing around 1.7% during this stretch.

Crude oil remained a key concern for the market. Brent crude was trading at $91.58 a barrel, up 0.62%, while WTI crude was at $85.55, up 0.72%. Investors remained concerned that prolonged uncertainty around the Middle East could keep oil prices elevated, adding to worries over inflation and India’s import bill.

On Tuesday, US President Donald Trump said no talks were taking place with Iran and said the Strait of Hormuz was open, contradicting Iran’s assertion that the key waterway remained shut to shipping. The lack of clarity over a possible resolution to the conflict kept energy markets on edge.

Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the ongoing weakness in the market was being driven mainly by rising crude prices and appreciating bond yields globally. He said, "Crude prices have been responding to news from the Middle East for many months since the start of the war. Now, there is total uncertainty about the outcome of this conflict. Crude prices are rising anticipating the continuation of the uncertainty."

Rising bond yields added another layer of pressure on equities. Vijayakumar said fears of higher inflation were pushing bond yields higher, with US 30-year yields at their highest levels since 2007. He said, "Yet, the Indian market has not corrected sharply since the fundamentals are strong and getting stronger," pointing to improving prospects for GDP and earnings growth in FY27 as well as strong domestic liquidity. He added that long-term investors could use the ongoing weakness to accumulate quality growth stocks, while market momentum remained stronger in the mid- and small-cap segments.

Markets, therefore, remained under pressure in early trade, with crude prices, uncertainty around the Middle East conflict and firm global bond yields keeping the Sensex and Nifty in the red, even as analysts said domestic fundamentals continued to provide support.