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The Nifty 50 traded near the flatline at 23,429, compared with its previous close of 23,431.50. The index moved between 23,404.35 and 23,494.95.
The Sensex traded at 74,752.95, down 0.02%. The index touched an intraday high of 74,910.96 and a low of 74,666.10.
Asian stocks also opened lower as rising crude prices and escalating US-Iran tensions kept investors cautious. Australia’s S&P/ASX 200 fell 1.38%, Japan’s Nikkei 225 declined 0.71% and South Korea’s KOSPI slipped 0.50%.
Oil Prices
Brent crude moved towards $102 a barrel, extending its rise for a fifth straight session after settling above $100 for the first time since July. West Texas Intermediate traded around $97.
The increase followed a fresh escalation in the US-Iran conflict, with Tehran warning that it was prepared for a more intense confrontation. The developments have revived concerns about possible disruption to energy flows through the Strait of Hormuz.
Pabitro Mukherjee, deputy vice president-research at Bajaj Broking, said elevated Brent prices and uncertainty over the geopolitical situation had remained a key drag on investor sentiment.
Inflation Risk
Higher crude prices are also raising concerns about inflation as investors await two US inflation reports this week. A sustained rise in energy costs could complicate the outlook for interest rates.
“Elevated Brent crude oil prices” have kept risk appetite subdued, Mukherjee said.
Siddhartha Khemka, head of research, wealth management at Motilal Oswal Financial Services, said Indian equities could remain under pressure amid weak global cues, higher crude prices and concerns over supply disruptions around the Strait of Hormuz.
US Markets
US equity futures were mixed early Thursday after Wall Street’s major averages fell for a third consecutive session. Dow futures gained 54 points, or 0.1%, while S&P 500 futures rose 0.04%. Nasdaq-100 futures were marginally lower.
On Wednesday, the Dow fell more than 400 points, or 0.8%, while the S&P 500 declined 0.5% and the Nasdaq Composite lost 0.6%.
Investors are weighing higher energy costs and their impact on inflation and monetary policy against the worsening geopolitical situation in the Middle East.
