Indian shares opened lower on Friday amid rising oil costs and concerns over the Strait of Hormuz, prompting cautious trading and sector rotation in early market activity.
Indian shares opened lower on Friday as a jump in oil prices and fresh worries over the Strait of Hormuz hit sentiment, with the Sensex dropping more than 400 points and the Nifty slipping back below 24,600 in early trade. The move echoed earlier bouts of market stress this year, when crude spikes linked to Middle East tensions quickly fed into domestic equities, inflation expectations and the import bill, according to market notes from HSBC, Brickwork Ratings and Primus Partners.
At the open, the Nifty began the session at 24,538.90, down from the previous close of 24,636, while the Sensex started at 78,516.08, compared with 78,954.76 the day before. By the time of reporting, the Nifty had pared some losses to trade near 24,596.05 and the Sensex was around 78,709.63, suggesting investors were cautious but not yet in full retreat.
The selling was uneven across the market. Auto, FMCG, IT, real estate and oil and gas names held up better, while many other sectors remained under pressure. On the BSE, TCS, Tech Mahindra, HCL Tech, BEL, NTPC, Infosys, IndiGo, Adani Ports, Titan and ITC were among the early gainers, while Bajaj Finance, Trent, Axis Bank, Eternal, Asian Paints, SBI and Tata Steel were among the main drags. A similar pattern was visible on the NSE, where IT and some defensive names found buyers but banks, metals and parts of the broader consumer space struggled.
Commodity markets added to the cautious mood. Brent crude was trading around $83.40 a barrel, while another crude benchmark was near $78.06, reinforcing concerns that higher energy costs could eventually filter into inflation and corporate margins. Rajesh Palviya, head of research at Axis Direct, said the market was watching whether the Nifty could reclaim the 24,800 area, while support was seen in the 24,500-24,400 zone. Vipin Dixena, a market analyst, said investors were showing a preference for selective buying rather than broad participation.
The latest pullback comes after several violent swings in Indian equities this year tied to oil and geopolitical risk. HSBC said in a March market update that a surge in Brent to about $112 a barrel during heightened US-Iran tension sparked a sharp fall in the Nifty and Sensex, while Brickwork Ratings warned in March that persistent oil volatility remained a key macro risk for domestic markets. By contrast, a stronger session in early April came when a reported ceasefire eased supply fears, underscoring how quickly sentiment can turn when tensions around the region shift.
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