Benchmark indices opened lower on May 20, following weakness in Asian markets amid ongoing concerns about high crude oil prices and rising global bond yields. Investors also remained cautious over the lack of progress in US-Iran peace negotiations and continued disruptions around the Strait of Hormuz, a critical shipping route which carries nearly one fifth of the total global oil demand.
Barring IT, pharma, and healthcare, all other major sectoral indices were trading in red. Nifty IT and Nifty Pharma traded about 0.50 per cent higher, while Nifty Healthcare was up by around 0.30 per cent. On the other hand, Nifty PSU Bank, Nifty Realty, Nifty Chemicals, and Nifty Media fell more than one per cent each. Nifty Auto, Nifty Financial Services, Nifty FMCG, Nifty Metal, Nifty Private Bank, Nifty Consumer Durables, and Nifty Oil & Gas were also in the negative territory.
Broader market indices mirrored the weakness in benchmarks. Nifty Midcap 100, Nifty Smallcap 100, and Nifty 500 were down by about 0.50 per cent each.
Crude Oil Remains Firmly Above $110 Per Barrel
Crude oil prices fell slightly on May 20 but remained firmly above the $110 per barrel level. At 10:00 AM, Brent crude futures were down 0.35 per cent at $110.50 per barrel, while US West Texas Intermediate (WTI) crude was trading near $103.65 a barrel, down 0.36 per cent from previous close.
Investors remained cautious as the Strait of Hormuz remained effectively closed, even as talks continued between Washington and Tehran.
