Sensex Falls 590 Points, Nifty Drops 176 Points Amid FPI Selling and Oil Price Spike

Mumbai, March 13: Indian stock markets opened lower on Friday as continued selling by foreign investors, rising crude oil prices, and geopolitical tensions in West Asia weighed on investor sentiment.

The benchmark indices started the trading session in the red. The Nifty 50 opened at 23,462.50, falling 176.65 points (0.75%), while the BSE Sensex opened at 75,444.22, down 590.20 points (0.78%).

Market analysts said that sustained selling by Foreign Portfolio Investors (FPIs) and global uncertainty triggered by the ongoing crisis in West Asia are putting pressure on Indian equities.

FPI Selling Continues to Weigh on Indian Markets

According to market expert Ajay Bagga, foreign investors have remained consistent sellers in the Indian market, which is contributing to the current weakness.

Bagga noted that when global markets weaken, FPIs often pull funds out of emerging markets like India to meet margin requirements elsewhere. This trend adds another layer of selling pressure to domestic markets.

He also pointed out that rising oil prices and geopolitical instability continue to affect global financial markets.

Rising Crude Oil Prices Add Pressure

Global energy markets are facing volatility as Brent crude oil prices crossed USD 100 per barrel due to supply disruptions and geopolitical tensions.

Market experts believe the closure of the Strait of Hormuz has limited the ability of major Gulf oil producers such as Saudi Arabia and Abu Dhabi to increase supply.

Bagga said India has already secured around 30 million barrels of Russian oil, but global supply constraints continue to create uncertainty in energy markets.

Inflation Concerns Rising

Economic data also indicates rising inflationary pressures. India’s Consumer Price Index (CPI) recently increased to 3.21%, mainly due to higher food prices.

Experts warn that imported inflation could rise further if energy prices remain elevated. While the government currently absorbs some fuel price shocks, inflation could increase in the coming months.

Sectoral Indices Trade Lower

Most sectoral indices on the National Stock Exchange (NSE) opened in negative territory, indicating broad-based selling.

Nifty Auto declined over 1%
Nifty FMCG fell 0.29%
Nifty IT dropped 0.67%
Nifty Metal slipped 0.53%
Nifty Private Bank declined 0.96%

Global Markets Also Under Pressure

Global markets also reflected a risk-off sentiment following rising geopolitical tensions.

In the United States, major indices closed sharply lower:

Dow Jones fell 1.56%
S&P 500 dropped 1.5%
Nasdaq declined 1.72%

Asian markets also traded mostly in the red:

Japan’s Nikkei 225 declined 1.17%
Hong Kong’s Hang Seng dropped 0.57%
Taiwan’s Weighted Index fell 0.39%
South Korea’s KOSPI slipped 1.57%

However, Singapore’s Straits Times Index showed a slight gain of 0.11% during early trade.

Market analysts believe that geopolitical tensions, rising oil prices, and continued foreign investor selling will remain key factors influencing Indian markets in the coming sessions.