Markets fall in early trade for consecutive 7th day due to rising crude

New Delhi: Benchmark equity indices Sensex and Nifty declined in early trade on Wednesday as elevated crude oil prices and persistent geopolitical uncertainties dented investors' sentiment.

The expiry of the temporary 60-day US-Iran ceasefire without any meaningful diplomatic breakthrough has renewed concerns over a prolonged disruption to energy supplies, driving crude oil prices higher, an expert said.

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The 30-share BSE Sensex was down 166.19 points to 77,070.93 in early trade. The 50-share NSE Nifty dropped 59 points to 24,096.75.

From the Sensex pack, Tata Steel, Larsen & Toubro, Bajaj Finance, Bharat Electronics, Power Grid and Mahindra & Mahindra were among the major laggards.

HCL Tech, Infosys, Eternal, Sun Pharma and Kotak Mahindra Bank were among the winners.

Brent crude, the global oil benchmark, traded 0.67 percent higher at USD 91.63 per barrel.

"The expiry of the temporary 60-day US-Iran ceasefire without any meaningful diplomatic breakthrough has renewed concerns over a prolonged disruption to energy supplies, driving crude oil prices higher and pushing long-term US Treasury yields to multi-year highs. The combination has triggered a broad risk-off mood across global financial markets," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.

In Asian markets, South Korea's Kospi tanked 5.59 percent. Japan's Nikkei 225 and Shanghai's SSE Composite index were also trading lower, while Hong Kong's Hang Seng index quoted marginally higher.

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US markets ended lower on Tuesday.

"The ongoing mild weakness in the market is driven mainly by two factors: one, the rising crude prices, and two, appreciating bond yields globally. Crude prices have been responding to news from the Middle East for many months since the start of the war. Now, there is total uncertainty about the outcome of this conflict," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,651.53 crore on Tuesday, according to exchange data.

On Tuesday, the Sensex was down 492.70 points, or 0.63 percent, to settle at 77,235.46, registering its third day of decline. The Nifty declined for the sixth day, sliding 132.75 points, or 0.55 percent, to end at 24,154.90.

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