Indian equity benchmarks opened higher on Monday, April 6, but reversed direction within minutes as selling pressure emerged, pushing the indices into negative territory.
In early trade, the BSE Sensex opened 157 points higher at 73,477, while the Nifty 50 rose 67 points to 22,723. The initial gains were short-lived, as the market turned lower shortly thereafter. The Sensex declined 377 points to 72,942, and the Nifty slipped 66 points to trade at 22,642.
The market showed early strength at the open, with the Sensex at 73,477 and the Nifty at 22,723. However, the upward movement did not sustain, and a decline followed soon after. According to experts, mixed cues from global markets and rising crude oil prices influenced investor sentiment, leading to pressure on equities.
Asian markets traded with a mixed trend on Monday morning. Japan’s Nikkei 225 and Topix indices were trading higher, while South Korea’s Kospi and Kosdaq also recorded gains. Several Asian markets remained closed due to holidays. Markets in Australia, New Zealand, and Hong Kong were shut for Easter, while China and Taiwan were closed for the Qingming Festival.
Weakness in US markets also contributed to investor caution globally. Rising tensions in West Asia and an increase in crude oil prices led to declines in US futures. Dow Jones Industrial Average futures fell 0.5%, while S&P 500 and Nasdaq-100 futures also traded with a weak bias. This trend weighed on Indian equities.
International crude oil prices rose, influencing market direction. West Texas Intermediate crude traded between $111 and $114 per barrel, while Brent crude prices also moved higher. Elevated oil prices remain a concern for import-dependent economies such as India, as they can contribute to higher inflation and widen the current account deficit.
The strengthening of the US dollar also impacted market sentiment. The US Dollar Index rose 0.18% to 100.21, reflecting the dollar’s position against major global currencies. The Indian rupee had recently strengthened against the dollar, closing at 93.10, although continued dollar strength may exert pressure on the currency.
