Sensex slips 590 pts, Nifty down 176 pts in weak opening amid FPI selling and crude spike

Mumbai (Maharashtra) [India], March 13 (ANI): Domestic equity markets opened in the red on Friday, extending the ongoing selling pressure amid persistent foreign outflows, rising crude oil prices, and geopolitical tensions in West Asia.
The benchmark indices opened lower in early trade, reflecting cautious investor sentiment.
The Nifty 50 index opened at 23,462.50, declining -176.65 points or (-0.75 per cent), while the BSE Sensex opened at 75,444.22, down -590.20 points or -0.78 per cent.
Market experts attributed the continued weakness to sustained selling by foreign portfolio investors (FPIs) and global market uncertainty triggered by the ongoing crisis in West Asia.
Ajay Bagga, Banking and Market Expert, told ANI that Indian markets are facing continued pressure due to strong foreign investor outflows.
"Indian markets are pointing to continued weakness. FPIs have been consistent, high sellers. Weakness in global markets usually translates into more FPI outflows from India to meet margin calls elsewhere, adding one more layer of negativity to Indian markets," Bagga said.
He also noted that the geopolitical situation and energy market volatility continue to weigh on global sentiment.
"Friday the 13th is not showing any signs of relief from the war, from elevated oil and gas prices and from looming shortages. The US has allowed around 120 million barrels of Russian oil sitting in tankers on the high seas to be bought. The oil price move post this was muted," Bagga added.
According to him, global oil supply remains constrained due to the closure of the Strait of Hormuz, which is impacting the ability of major Gulf producers to increase supply.
"The swing capacity is in the Gulf with the Saudis and Abu Dhabi, both of whom are constrained by the closure of the Strait. As such, Russia will not be able to move the needle. India has already secured 30 million barrels of Russian oil," Bagga said.
He further noted that inflationary pressures are building in the economy. India's Consumer Price Index (CPI) rose to 3.21 per cent, largely driven by higher food prices.
"Imported inflation is soaring under the hood, even though the government is absorbing the petrol and diesel hit for now. Expect higher inflation from March onwards," Bagga said.
Sectoral indices on the National Stock Exchange (NSE) showed broad-based weakness. Nifty Auto declined by more than 1 per cent, Nifty FMCG lost 0.29 per cent, Nifty IT fell 0.67 per cent, Nifty Metal dropped 0.53 per cent, while Nifty Private Bank declined 0.96 per cent, indicating widespread selling pressure across sectors.
Meanwhile, Brent crude oil prices crossed USD 100 per barrel, as geopolitical tensions and supply disruptions pushed investors toward safer assets.
Global markets also reflected similar risk-off sentiment. US markets closed sharply lower following fresh geopolitical developments. The Dow Jones index declined 1.56 per cent to close at 46677, the S&P 500 fell 1.5 per cent to 6672, and the Nasdaq index dropped 1.72 per cent to 22311.
In other Asian markets, most indices traded in the red. Japan's Nikkei 225 declined 1.17 per cent to 53814, Hong Kong's Hang Seng fell 0.57 per cent to 25570, Taiwan's Weighted index slipped 0.39 per cent to 33452, and South Korea's KOSPI dropped 1.57 per cent to 5496.
However, Singapore's Straits Times index was trading in the green with a minor gain of 0.11 per cent to 4860. (ANI)

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