Mumbai, April 2 (IANS) Indian stock markets opened sharply lower on Thursday, with key equity benchmarks declining more than 1 per cent amid fresh escalation in the West Asia conflict.

Sensex opened at 72,262, down 872 points or 1.19 per cent, while the Nifty fell 1.31 per cent or around 300 points to open at 22,383.40. Both the indices fell further as trading progressed in early hours.

All sectors opened in the red, with banking, realty, chemicals, auto, metal, and healthcare among the top losers. Sun Pharma, IndiGo, Asian Paints, Shriram Finance, Larsen and Toubro, Axis Bank, Eternal, and Trent were the top laggards in the 50-scrip Nifty basket.

Sentiment was hit after US President Donald Trump stopped short of outlining a roadmap to end the conflict in West Asia amid fresh threats.

Market experts said the near-term outlook remains mildly bullish, underpinned by easing crude prices, improving geopolitical cues, and steady DII inflows.

“However, markets are likely to remain volatile and event-driven, with close attention on crude oil movements, FII activity, and further developments in West Asia,” they said.

The Indian rupee remained under pressure but showed signs of stabilising, supported by improving global risk sentiment.

Overnight, Wall Street ended higher, with the S&P 500 gaining 0.72 per cent or 46.80 points and the Nasdaq rising about 1 per cent or 250 points.

Across Asian markets, major indexes traded in the red, with the Nikkei, Hang Seng, and KOSPI falling up to 3 per cent.

Oil prices rebounded, with Brent crude futures rising as much as 5.24 per cent to $106.47 per barrel and US WTI futures climbing 4.5 per cent to $104.64 as of 8:52 am.

On Wednesday, foreign institutional investors (FIIs) were net sellers in the Indian equity markets, offloading shares worth Rs 8,331 crore, while domestic institutional investors (DIIs) provided support by buying equities worth Rs 7,171.80 crore.

–IANS

ag/na