Sensex, Nifty Open Flat as Crude Stays Above $100 On Middle East Tensions

Indian equity markets opened largely flat on Thursday as escalating tensions in the Middle East kept crude oil prices above $100 a barrel, while investors remained cautious ahead of key US economic data and the Federal Reserve’s monetary policy meeting next week. The BSE Sensex was at 74,805.07, rising 40.84 points, or 0.05%, at 9:17 am. The NSE Nifty stood at 23,435.80, up 4.30 points, or 0.02%.

The subdued opening followed a weak session on Wednesday, when both benchmark indices closed at three-month lows. The Nifty and Sensex have declined in seven of the past eight trading sessions, losing around 3.1% each during that period. Investors are closely watching global developments, particularly movements in crude oil prices and signals from the US economy that could influence expectations around interest rates.

Crude oil remained a major concern for Indian markets as tensions in the Middle East intensified. Iran said it had attacked 10 ships near the Strait of Hormuz after the US sank five Iranian oil tankers. The developments have raised concerns over disruptions to global oil supplies, keeping crude prices elevated. The Strait of Hormuz is a critical route for international energy shipments, making any prolonged disruption a potential risk for global markets.

Also Read: Sensex Falls 813 Points, Nifty Below 23,450 Amid West Asia Tensions

Higher crude prices pose a significant challenge for India, which is the world’s third-largest oil importer. An extended rise in oil prices could increase the country’s import bill, add to inflationary pressures and weigh on economic growth and corporate profitability. Rajeev Sharan, head of research at Brickwork Ratings, said costlier crude could squeeze margins in oil-sensitive sectors such as aviation, paints, tyres, chemicals, logistics and parts of the fast-moving consumer goods industry.

Foreign portfolio investors continued to remain net sellers in Indian equities, with provisional NSE data showing outflows of ₹583 crore on Wednesday. Domestic institutional investors provided some support by purchasing shares worth ₹1,509 crore. Meanwhile, GIFT Nifty futures were at 23,489.50 points at 7:44 am, indicating a muted start for the Nifty 50. Investors are also assessing how higher oil prices could influence inflation and monetary policy expectations in the US.

Among stocks in focus, Hindustan Zinc signed a six-year transportation agreement with MFL India for the deployment of 30 electric trucks. Wipro and CrowdStrike launched a CISO command centre aimed at transforming enterprise cybersecurity operations. Coal India’s subsidiary Northern Coalfields reported an improvement in production and dispatches as monsoon conditions receded. Market participants are expected to track these developments alongside global crude prices and upcoming US economic indicators for further direction.

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