Stock market today: BSE Sensex opens over 100 points up, NSE Nifty50 trades above 23,000
Dalal Street began trading on a positive note after experiencing a significant decline earlier this week. BSE Sensex opened over 100 points higher, while NSE Nifty traded above 23,000. However, rising crude oil prices are impacting overall market sentiment and limiting gains. Foreign investors have also contributed to the decline by selling Indian shares worth over 50 billion rupees.
Friday morning brought a bright start to the Indian stock market following a significant decline over the past week. The BSE Sensex began trading over 100 points higher than the previous close, while the NSE Nifty 50 opened above the 23,000 mark. However, this optimism was tempered by the rise in oil prices and the impact of global bond yields.
The BSE Sensex rose by 155.82 points, or 0.21%, to reach 73,736.36 points, while the NSE Nifty 50 gained 32.60 points, or 0.14%, to settle at 23,095.70 points. GIFT Nifty futures indicated a positive opening for the benchmark indices, trading at 23,103, up by 5.5 points or 0.02%.
Despite the market's bullish start, the broader weekly trend remained bearish. The NSE Nifty 50 has already declined by 1.2% this week, and the BSE Sensex has dropped by 1%, indicating a seventh consecutive weekly loss. Earlier in the week, the Sensex had plummeted 1,247.71 points, closing at 73,580.54, and the Nifty had fallen 383.70 points, closing at 23,063.10.
Investors have been grappling with the potential repercussions of the ongoing Middle East conflict on inflation and interest rates worldwide. Crude oil prices experienced a slight dip on Friday but remained elevated around $106 per barrel. Market participants were closely monitoring the prospects of a US-Iran ceasefire and the destruction of Saudi Arabian infrastructure by Houthi rebels.
The surge in oil prices has also pushed the yield on US 30-year bonds to a level not seen in over two decades, exerting additional pressure on the market. India is particularly vulnerable to higher crude prices, as it is the world's third-largest crude importer. The surge in oil costs increases the nation's import bill, amplifies inflationary concerns, and dampens corporate profitability.
Foreign investment in Indian equities has also suffered, with provisional data showing that foreign investors sold Indian shares worth 50.27 billion rupees ($523.89 million) on Thursday.
In a bid to end the conflict, US and Iranian negotiators in New York are exploring a phased approach out of the war, which would involve Iran reopening the Strait of Hormuz and the United States lifting its economic blockade on Iran, according to sources cited by Reuters.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Sensex, Nifty open cautiously today; IT stocks bleed as crude, yields bite thehindubusinessline.com
