Sensex, Nifty Fall 1% on Oil Surge, FII Selling

Indian benchmark stock indices opened sharply lower on Thursday morning in Mumbai, weighed down by a surge in global crude oil prices, sustained foreign institutional investor selling, and cautious sentiment following the US Federal Reserve's decision to hold interest rates steady.

The BSE Sensex, which closed at 77,496.36 on Wednesday, opened at around 77,014 and fell further to trade at 76,707.80 to 76,849.33 by mid-morning, down 647 to 788 points or 0.83 to 1.02 percent. The NSE Nifty 50, ending the prior session at 24,177.65, opened near 23,997 and slipped to 23,918.80 to 23,965.10, a decline of 212 to 258 points or 0.88 to 1.07 percent. Markets will remain closed Friday for Maharashtra Day, prompting traders to adopt cautious overnight positioning ahead of a long weekend amid pending state election results and geopolitical tensions.

Brent crude oil prices spiked above 120 dollars per barrel briefly before easing to the 107 to 111 dollar range, driven by supply disruptions from the blockade and closure of the Strait of Hormuz linked to Iran-related tensions. The rupee faced pressure from elevated oil costs and dollar strength, while the India VIX hovered near 17.43,...