Sensex, Nifty open deep in red on weak global cues and rising oil prices

New Delhi [India], May 18 (ANI): Indian markets opened in the red as benchmark equity indices registered sharp losses during the opening bell following weak global cues. The BSE SENSEX stood at 74,347.68 points, down 890.31 points or 1.18 per cent. The NSE NIFTY 50 stood at 23,414.20 points, losing 229.30 points or 0.97 per cent.
The downward trend remains visible across sectors. Nifty PSU Bank and Nifty Realty led losses with drops of 1.75 per cent to 7,886.45pts and 743.05pts, respectively. Nifty Consumer Durables fell 1.64 per cent to 34,973.90pts, and Nifty Financial Services 25/50 declined 1.37 per cent to stand at 27,304.65pts. Nifty Metal, Nifty Auto, and Nifty Private Bank witnessed drops of over one per cent.
Nifty Oil & Gas slid 0.79 per cent to 11,162pts, and Nifty FMCG lost 0.57 per cent to stand at 50,759.60pts. Nifty Healthcare and Nifty Pharma recorded minor decreases of 0.45 per cent and 0.21 per cent.
Market experts point to international developments and commodity pressures for this market downturn.
"Indian markets are likely to open on a cautious note as renewed geopolitical rhetoric from the US continues to weigh on global investor sentiment," said Ponmudi R, CEO of Enrich Money. "U.S. President Donald Trump issued a fresh warning stating that the 'clock is ticking for Iran,' signaling growing impatience over the pace of negotiations and increasing uncertainty surrounding the ongoing US-Iran situation and the Strait of Hormuz. This continues to remain a key overhang for global financial markets."
He further noted that on the currency front, the Indian rupee breached the 96 mark against the US dollar, reflecting continued weakness amid elevated crude oil prices, strong dollar demand, and cautious global sentiment.
Rajesh Palviya, Head of Research, Axis Direct, highlighted that, "Asian markets are negative this morning, gold sits near USD 1,450, silver below USD 17.70, and copper at USD 6. Crude oil has risen to USD 110.7 amid fresh warnings from Trump to Iran. GIFT Nifty is at 23,555.5, implying a gap-down of about 100 points."
Palviya emphasized that with oil prices high, failure to hold the opening zone could quickly bring 23,400-23,350 into play.
Echoing this sentiment, Shrikant Chouhan, Head Equity Research at Kotak Securities, noted that during the week, Nifty slipped below its 50-day SMA (Simple Moving Average) of 24,000/77,000, and post-breakdown, selling pressure intensified.
"Technically, on weekly charts, it has formed a bearish candle and is currently trading comfortably below short-term moving averages, which is largely negative. We are of the view that the short-term market outlook remains weak, but a pullback is likely to continue if it manages to trade above 23,600/75,300," Chouhan said.
However, on the downside, Chouhan mentioned that a "fresh sell-off is possible only if the index breaks below 23,600/75,300. Below this level, it could retest 23,400/74,500." (ANI)

(This article was generated from news agency ANI without modifications to the text.)