Indian benchmark indices opened lower on Wednesday, reversing a four-session winning streak as investors grew cautious amid rising crude oil prices and escalating geopolitical tensions in the Middle East.
The Nifty 50 fell 0.41% while the BSE Sensex slipped 0.50%, with weak breadth evident as 10 of the sector indices traded in the red.
The pullback marks a sharp shift from Monday’s session, when lower oil prices and sustained foreign portfolio investor buying had propelled the indices to new highs.
The market’s sensitivity to energy costs remains acute, with Brent crude prices acting as a key drag on sentiment.
While buying interest persisted in select pockets, the broader market struggled to find footing as traders weighed the impact of higher input costs on corporate margins.
The June-quarter earnings season is also underway, adding a layer of scrutiny to valuations as companies navigate the mixed macro environment.
Amid the volatility, strategists are highlighting specific opportunities within the futures and options segment.