Sensex, Nifty Trade Flat as Geopolitical Tensions and Oil Prices Weigh on Markets

Indian equity benchmarks traded nearly flat in early deals on Thursday as geopolitical tensions, Brent crude pricing above $101 per barrel and rising US bond yields kept investors cautious. The BSE Sensex was down 21.32 points, or 0.03%, at 74,742.91, while the NSE Nifty 50 slipped 7.85 points, or 0.03%, to 23,423.65.

Sectoral performance remained mixed, with Nifty PSU Bank climbing over 1% and Oil & Gas gaining 0.61%. However, Nifty Auto emerged as the biggest loser, declining 0.66%, while healthcare, pharma and cement stocks also faced selling pressure. Mahindra & Mahindra fell 1.3%.

Market sentiment remained fragile as elevated crude prices and a rising US 10-year Treasury yield to 4.83% raised concerns about inflation and potential US Federal Reserve rate hikes, which could pressurize India's economic growth and energy-sensitive sectors.