Stock markets down in early trade dragged by rising crude oil prices

New Delhi: Market benchmark indices Sensex and Nifty declined in early trade on Friday, dragged down by financial stocks and rising crude oil prices.

The 30-share BSE Sensex declined 235.36 points to 78,699.80 in early trade. The 50-share NSE Nifty dipped 24.30 points to 24,608.25.

Follow The PSUWatch Channel on WhatsApp

From the Sensex pack, Bajaj Finance, Bajaj Finserv, Trent, ICICI Bank, Bharti Airtel and Eternal were among the major laggards.

Tata Consultancy Services, Tech Mahindra, HCL Tech and Infosys were among the winners.

Brent crude, the global oil benchmark, traded 1.16 percent higher at USD 83.45 per barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 17.86 crore on Thursday, according to exchange data.

"Overnight, Wall Street retreated after recent record highs as investors reduced exposure to risk assets amid renewed concerns over energy prices and geopolitical uncertainty. The rise in crude oil prices followed growing doubts over the pace and outcome of diplomatic negotiations involving Iran and the Strait of Hormuz, reviving concerns that disruptions to one of the world's most critical energy corridors could persist for longer than previously anticipated," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.

Follow PSU Watch on LinkedIN

Benchmark indices have been facing divergence since Monday after stock exchanges introduced a new auction mechanism for shares having futures and options (F&O) contracts.

The Closing Auction Session (CAS) in the equity cash segment became operational on Monday, introducing a new auction-based mechanism for determining the closing prices of eligible stocks in a move aimed at making the price discovery process more transparent and robust.

In Asian markets, South Korea's KOSPI and Japan's Nikkei 225 index traded lower, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index quoted higher.

US markets ended lower on Thursday.

On Thursday, the Sensex climbed 373.76 points, or 0.48 percent, to settle at 78,954.76. The Nifty traded in a narrow range for the day and edged marginally higher by 11.35 points, or 0.05 percent, to end at 24,636.

(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)