Domestic benchmark indices Sensex and Nifty opened lower on Thursday, tracking Asian peers as a spike in crude oil prices on supply concerns weighed on sentiment, while a hawkish pause by the US Federal Reserve and a depreciating rupee against the dollar added to investor caution.

At 9:20 am, the BSE Sensex declined 788.56 points, or 1.02%, to 76,707.80. The NSE Nifty slipped 258.85 points, or 1.07%, to 23,918.80.

Among Sensex constituents, InterGlobe Aviation (IndiGo) slumped 2.47% to Rs 4238.60. Eternal slipped 2.16%, while Axis Bank, Adani Ports, and Mahindra & Mahindra (M&M) dropped 1.97%, 1.82% and 1.69%, respectively.

Brent crude at $120 per barrel threatens to worsen India's macroeconomics; the downside risk to growth and upside risk to inflation will increase if crude prices remain elevated at this level, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.

“Two, the results from AI majors in US and South Korea are better than expected; this, in turn, might strengthen the ongoing AI trade for some more time. This means further portfolio outflows from India, impacting our markets,” Vijayakumar said.

Broader Asian markets traded lower today. Japan’s Nikkei 225 was down 1.02% to 59,304.62, while South Korea’s Kospi slipped 0.38% to 6,665.54, and Hong Kong’s Hang Seng slumped 1.30% to 25,773.69. 

Wall Street ended on a flat-to-mixed note overnight, with two of the three major indices closing in the red. The S&P 500 edged down 0.04% to close at 7,135.95, while the Dow Jones Industrial Average declined 0.57% to end at 48,861.81. The Nasdaq Composite edged up 0.04% to settle at 24,673.24.

“The immediate range for Nifty is seen between 23,800 and 24,300. While the broader trend remains positive, the short-term structure suggests consolidation, and a decisive breakout above resistance levels is required for further upside," said Aakash Shah, technical research analyst at Choice Equity Broking Private Ltd.

In the previous session on Wednesday, the Sensex jumped 609.45 points, or 0.79%, to settle at 77,496.36, while the Nifty gained 181.95 points, or 0.76%, to close at 24,177.65.