Indian equity benchmarks made a gap-down opening on Thursday as Brent crude oil price moved above $100 per barrel as tensions deepened in the Strait of Hormuz after Iran reportedly fired at ships at Strait of Hormuz and seized ships. Sensex and Nifty were trading under pressure with cut of over 0.60% each in early deals amid foreign fund outflows. On April 22, foreign institutional investors (FIIs) net sold equities worth Rs 2,078.36 crore in India. Some cautiousness came as the RBI data showed that net sales growth of the select foreign direct investment (FDI) companies moderated to 8.7 per cent in 2024-25 from 9.4 per cent in the previous year. 

On the global front, Asian markets were trading lower, as Nikkei and Kospi hit record highs, amid geopolitical tensions after Iran attacked three ships in the critical chokepoint Strait of Hormuz and seized two of these vessels. The attacks came after the US President Donald Trump extended a ceasefire while maintaining the US blockade of Iranian ports.

The BSE Sensex is currently trading at 77886.62, down by 629.87 points or 0.80% after trading in a range of 77693.06 and 78020.87. There were 2 stocks advancing against 28 stocks declining on the index.

The top gaining sectoral indices on the BSE were Healthcare up by 0.85%, Power up by 0.42%, Capital Goods up by 0.34%, Industrials up by 0.14% and Energy up by 0.09%, while Consumer Durables down by 1.57%, Auto down by 1.25%, Consumer Discretionary down by 1.06%, Realty down by 0.85%, Bankex down by 0.81% were the top losing indices on BSE.

The only gainers on the Sensex were Sun Pharma up by 0.83% and Power Grid up by 0.16%. On the flip side, Tech Mahindra down by 2.50%, Eternal down by 2.13%, Mahindra & Mahindra down by 2.07%, Asian Paints down by 1.68% and Trent down by 1.67% were the top losers.

Meanwhile, amid geopolitical tensions, industry body Assocham has said that the Indian economy, largely driven by consumption, has the potential to grow at over 7 per cent in 2026-27 even if crude oil costs $90-100 per barrel. It noted that the growth will be supported by strong consumption, steady exports, and increasing capital investment. It said that India’s resilience to high energy costs has enhanced significantly over the years, as the country has absorbed major oil shocks while maintaining robust growth. Based on its analysis, Assocham emphasised that India has demonstrated the ability to manage elevated energy prices without compromising its economic growth trajectory.

It added that data analysed for the period from 2000-01 to 2025-26 shows India recorded some of its strongest growth years even at moderate to high crude oil price levels. For instance, in 2022-23, the economy grew by 7.6 per cent despite oil prices (Indian crude basket) averaging $93 per barrel. In 2023-24, growth remained strong at 7.2 per cent (new series), with oil prices averaging $82 per barrel. It further highlighted that even during 2011-14, when oil prices exceeded $100 per barrel, GDP growth remained in the range of 5.2-6.4 per cent. In contrast, the sharpest contraction of (-)5.78 per cent occurred in 2020-21, when oil prices were among the lowest in the past two decades (below $45 per barrel), primarily due to the COVID-19 pandemic.

Nirmal Kumar Minda, President of Assocham, said ‘India’s growth story is largely driven by consumption, which in turn strengthens the supply side through factory expansion, increased employment, and rising income levels. This creates a virtuous cycle of growth and enhances the overall resilience of the economy.’ Meanwhile, the Indian economy had grown at 6.5 per cent in the previous fiscal year. Moreover, according to the first advance estimates of GDP released by the Ministry of Statistics and Programme Implementation in January, the Indian economy is projected to grow by 7.4 per cent in the current fiscal year, maintaining its position as the world’s fastest-growing major economy despite punitive US tariffs and ongoing geopolitical tensions.

The CNX Nifty is currently trading at 24213.45, down by 164.65 points or 0.68% after trading in a range of 24134.80 and 24256.90. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 4.95%, Cipla up by 2.60%, ONGC up by 1.82%, Sun Pharma up by 0.81% and Nestle up by 0.78%. On the flip side, Tech Mahindra down by 2.48%, Eternal down by 2.30%, Mahindra & Mahindra down by 2.13%, Trent down by 1.76% and Asian Paints down by 1.66% were the top losers.

All Asian markets were trading lower; Nikkei 225 slipped 595.86 points or 1% to 58,990.00, Taiwan Weighted plunged 576.14 points or 1.52% to 37,302.33, Hang Seng declined 228.24 points or 0.88% to 25,935.00, Jakarta Composite lost 108.76 points or 1.44% to 7,432.85, Straits Times fell 47.2 points or 0.94% to 4,955.52, KOSPI dropped 38.80 points or 0.6% to 6,379.13 and Shanghai Composite was down by 32.55 points or 0.79% to 4,073.71.