Indian equities open lower despite good GDP forecast

Indian stock markets settled in the red on Thursday as escalating tensions in West Asia and again a sharp rise in crude oil prices weighed on investor sentiment.

Indian stock markets opened in the red on Thursday as escalating tensions in West Asia and again a sharp rise in crude oil prices weighed on investor sentiment.

India's real gross domestic product (GDP) growth is expected to moderate to 7.1 per cent in fiscal 2027 from 7.6 per cent in the previous year, according to a report by Crisil Intelligence.

The domestic stock markets opened with modest gains on Wednesday as easing crude oil prices supported investor sentiment, even as geopolitical tensions in the Middle East continued to remain in focus.

The primary concern for the Indian economy is the sharp increase in fuel costs. According to the report, "Brent has moved up from a range of US$ 65-US$ 70 per barrel to US$ 110 per barrel since the war broke out." This surge is linked to major infrastructure failures in the region. "Iran's oil infrastructure has been damaged. The Strait of Hormuz is closed. LNG supply from Qatar is closed. Natural gas price has surged by 50%," the report added.

The Indian benchmark indices opened with significant gains on Tuesday. BSE Sensex rose by 591.41 points or 0.76 per cent to reach 78,157.57 at 9:17 am, while NSE NIFTY 50 climbed 158.20 points or 0.66 per cent to 24,186.25.

Individuals and domestic mutual funds together now hold about 36 per cent of the free float market capitalisation of Nifty 50 companies, said SEBI Chairman Tuhin Kanta Pandey, addressing the 30th anniversary of Nifty 50 at the National Stock Exchange (NSE).

Ashish Kumar Chauhan, MD and CEO of the National Stock Exchange (NSE), marked the 30th anniversary of the Nifty 50 index by announcing that the market capitalization of companies listed on the exchange has reached USD 5 trillion. Highlighting India's rise to becoming the fourth-largest capital market in the world, Chauhan noted that the index is no longer just a financial metric but a "stock of the nation."

In an interview with ANI, Mishra highlighted that India's heavy reliance on imported "dense energy" makes it a primary target for global price volatility. "Every dollar increase per barrel costs approximately $1.8 billion annually. For instance, a $50 increase in oil prices represents a $90 billion impact, which is more than 2% of our GDP if sustained for a year."

Former Chief Economic Advisor Krishnamurthy Subramanian has expressed confidence that India can sustain an average economic growth rate of around 8 per cent over the next two decades, arguing that policymakers must aim for such expansion if the country is to fully realise its long-term economic potential.