Sensex, Nifty Trade Lower as Crude Rises Above $91

Ahead of market opening, analysts said the rise in Brent crude and the increase in US 10-year Treasury yields were likely to weigh on equities in the near term. The US 10-year bond yield has risen to 4.73 per cent, which could be negative for foreign institutional investor flows, they said.

However, analysts noted that a resilient Indian economy and signs of an earnings growth turnaround could provide support to domestic equities. They further stated that domestic institutional investors, which have substantial funds, could step in to buy significant dips, while retail investors may use market declines to gradually accumulate quality stocks for the long term. Heightened geopolitical risks are likely to keep markets volatile.

The selling in the markets came after reports highlighted Iran’s indication that it could adopt a more offensive posture and US President Donald Trump’s ruling out an extension to the ceasefire arrangement, which have intensified concerns over potential disruptions to energy supplies.

Following that, Brent crude — the international oil benchmark — rose 0.60 per cent from the previous close to trade above $91 a barrel, while US West Texas Intermediate crude also gained more than 1 per cent to $85.37 a barrel.