Sensex down 166 points, Nifty off 59 as Brent crude hits $91.63. FII buying of ₹1,651 crore fails to offset geopolitical risk. Alpha Score 57 for INFY.
Alpha Score of 57 reflects moderate overall profile with weak momentum, strong value, moderate quality, moderate sentiment.
Indian benchmark equity indices opened lower Wednesday as crude oil prices extended their rally after the temporary US-Iran ceasefire lapsed without a renewed agreement. The 30-share BSE Sensex fell 166 points to 77,070.93 in early trade. The NSE Nifty dropped 59 points to 24,096.75.
Brent crude traded 0.67% higher at $91.63 per barrel. The 60-day truce, agreed in April, expired over the weekend without a diplomatic breakthrough. That has raised the prospect of continued supply disruptions from the Middle East, analysts said.
The risk-off tone was broad across Asian markets. South Korea's Kospi tanked 5.59%. Japan's Nikkei 225 and Shanghai's SSE Composite index also traded lower. Hong Kong's Hang Seng managed a marginal gain.
From the Sensex pack, Tata Steel, Larsen & Toubro, Bajaj Finance, Bharat Electronics, Power Grid and Mahindra & Mahindra were the biggest laggards. Gainers included HCL Tech, Infosys, Eternal, Sun Pharma and Kotak Mahindra Bank. Infosys, which was among the winners, carries an AlphaScala Alpha Score of 57 out of 100, rated Moderate – reflecting relative resilience in the Technology sector. View INFY stock page
"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," said Ponmudi R, CEO of Enrich Money. "The combination has triggered a broad risk-off mood across global financial markets."
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, offered a similar reading. Crude prices have been "responding to news from the Middle East for many months since the start of the war," he said. "Now, there is total uncertainty about the outcome of this conflict."
The geopolitical risk comes against a mixed background for foreign flows. Foreign institutional investors bought equities worth Rs 1,651.53 crore on Tuesday, exchange data showed. That buying was not enough to offset the crude-driven selling pressure Wednesday morning.
A resumption of ceasefire talks or a diplomatic de-escalation would ease the supply premium in oil and likely lift equity sentiment. On the other hand, a further escalation in the Middle East or a sustained crude rally above $95 would deepen the risk-off move, traders said.
For more on crude oil dynamics, see the crude oil profile. Broader commodities analysis covers how oil price moves affect related markets.
No new talks between the US and Iran have been announced. The ceasefire initially ran for 60 days and expired Sunday without extension.
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