Sensex slips 300 points, Nifty near 24,400 as FII selling, crude oil weigh on sentiment

Synopsis: Indian equities opened lower on Thursday as elevated crude oil prices, foreign fund outflows, rupee weakness and continued geopolitical uncertainty kept investors cautious. The benchmark Sensex and Nifty remained under pressure in early trade, with the Sensex declining nearly 300 points and the Nifty hovering around the 24,400 mark. Persistent concerns over developments in the Strait of Hormuz continued to weigh on risk appetite. Four key factors driving the market decline 1) Crude oil remains elevated Brent crude was trading near $88.25 a barrel as uncertainty surrounding the US-Iran standoff and the Strait of Hormuz continued to support oil prices. Higher energy costs remain a concern for the domestic economy and corporate earnings. 2) Foreign fund outflows Foreign institutional investors remained sellers in Indian equities, withdrawing around ₹1,003 crore in the previous session. Continued selling by overseas investors has added pressure to the broader market. 3) Rupee under pressure The rupee weakened to around 95.40 against the US dollar, with higher crude prices and geopolitical risks weighing on the currency. A weaker rupee can further increase the cost of imports and add to market concerns. 4) Geopolitical tensions Uncertainty surrounding the US-Iran situation and developments near the Strait of Hormuz continued to keep investors cautious. Any escalation could affect crude supplies, shipping activity and overall market sentiment. Market focus: Investors are likely to track crude oil prices, foreign fund flows, currency movement and geopolitical developments for further direction. Volatility is expected to remain elevated as global risk factors continue to influence domestic equities. Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.