Indian equity markets ended lower on Thursday as renewed attacks in the Red Sea stoked fears of oil supply disruptions, sending crude prices higher and dampening investor sentiment. The benchmark BSE Sensex dropped 0.28% to 76,539.97, while the Nifty 50 slipped 0.21% to 23,945.30, according to TradingView data.
The selloff was triggered by the Houthi militia’s strikes on two Saudi oil tankers in the Red Sea, following a warning from the UK Maritime Trade Operations (UKMTO) about a potential attack on a commercial vessel off the coast of Saudi Arabia. The incidents have intensified concerns over the safety of one of the world’s busiest shipping lanes, raising the specter of prolonged disruption to global oil flows.
Crude Oil Surge Puts Pressure on India’s Economy
Geopolitical instability pushed Brent crude near the $96-per-barrel mark, while West Texas Intermediate (WTI) crude hovered above $88 per barrel. For India, which imports the majority of its crude oil requirements, higher prices are expected to widen the import bill, stoke inflationary pressures, and potentially weaken the rupee. This combination is likely to weigh on investor appetite for equities, particularly in sectors reliant on expensive raw materials.
Banking and Realty Stocks Lead the Decline
Selling pressure was broad-based, with profit booking observed in banking, financial services, real estate, healthcare, and pharmaceutical stocks. Midcap and smallcap indices also closed in negative territory, reflecting a cautious mood across the market. However, losses were partially offset by gains in automobile stocks, which extended their recent rally on the back of strong corporate earnings. Media shares also managed to stay afloat, trading modestly higher during the session.
Markets Await Fresh Global Cues
Investors are now closely monitoring developments in the Red Sea and the broader West Asia conflict, along with crude oil price movements. Any further escalation in geopolitical tensions or signs of supply disruptions could keep volatility elevated in the coming sessions. At the same time, domestic earnings reports and global economic data are expected to influence the near-term direction of the markets.
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