Equity Markets Open Flat Despite Crude Oil Prices Surging To $92, Investors Remain Cautious Amid Market Uncertainty

Mumbai: The domestic equity market opened flat on Wednesday as crude oil prices climbed to nearly $92 and rising global bond yields dampened risk appetite. The Sensex began at 77,218.05, falling 17.41 points, or 0.02%, while Nifty started at 24,152.05, slipping 2.85 points, or 0.01%. Technology stocks, however, led gains among sectoral indices, with Nifty IT rising 0.82% in early trade.

Most other sectors, on the other hand, remained relatively subdued. Nifty MidSmall IT & Telecom gained 0.59%, followed by Nifty Realty and Nifty REITS & Realty, which rose by 0.2% each. On the downside, Sensex fell 493 points, while Nifty bottomed out below 24,200.

Among the declining indices, Nifty Metal fell 0.35%, followed by Nifty Auto, which declined 0.14%. Nifty MidSmall Healthcare dropped 0.10%, and Nifty Pharma, Nifty Chemicals, and Nifty500 Healthcare all declined 0.09% each. Experts pointed to the surge in crude oil prices and higher bond yields globally as the primary driver of the ongoing weakness.

They attributed the rise in crude prices to mounting uncertainty over the Middle East conflict, which raised concerns over inflation and fueled upward pressure on bond yields. The US 30-year yields are at their highest level since 2007.

Despite the market turmoil, strong domestic fundamentals, improving GDP, and earnings growth prospects for the fiscal year 2027 provided a semblance of resilience. Long-term investors could use the current weakness to accumulate quality growth stocks, especially in mid- and small-cap segments, where momentum remains stronger, according to market experts.

Meanwhile, Asian markets also declined amid continuing weakness in semiconductor stocks, as Brent crude traded near $92 per barrel after Iran adopted a tougher stance, closing the Strait of Hormuz to prevent further oil flow. The US, however, ruled out extending the ceasefire.