Global crude oil prices remained highly volatile this week, with both the key benchmarks trading in negative on Friday.
Brent crude futures fell as much as 2.29 per cent to $105.53 per barrel as of 9:40 am, while US WTI crude declined 2.54 per cent to $92.08.
So far this week, Brent crude has dropped over 5 per cent, hovering near the $100 mark, while WTI crude has also fallen nearly 5 per cent to trade around $90.
Meanwhile, the Indian rupee weakened by 28 paise to hit an all-time low of 94.24 against the US dollar in early trade.
Amid the uncertainty, safe-haven demand pushed precious metals higher. Gold contracts for April 2 were trading at Rs 1,40,979, up Rs 1,486 or 1.07 per cent as of 10 am. Silver futures (May 5) were at Rs 2,24,097, up Rs 4,223 or 1.92 per cent.
The decline across commodities and equities comes amid continued uncertainty over the West Asia conflict, with no clear signs of de-escalation.
Market sentiment remains fragile after US President Donald Trump said the pause on attacks on Iran's energy infrastructure would be extended into April, adding that talks with Tehran were progressing "very well". However, an Iranian official termed a US proposal to end the conflict as "one-sided and unfair".
Iran has also not confirmed any ongoing talks with the US.
Global equity markets remained under pressure, with US indices ending lower. The S&P 500 fell 1.74 per cent, while the Nasdaq declined 2.38 per cent. Asian markets followed suit, with Japan's Nikkei slipping over 1 per cent and South Korea's Kospi dropping around 3 per cent.
Back home, domestic equity benchmarks also opened in the red. The Sensex declined over 400 points to 74,883.79 in early trade, while the Nifty opened at 23,173.55, down 132.90 points or 0.57 per cent.
After the government on Friday cut central excise duty on petrol and diesel by Rs 10 per litre each amid the ongoing West Asia crisis, Finance Minister Nirmala Sitharaman said the move would help shield consumers from global volatility.
She said the reduction was aimed at protecting citizens from a potential rise in fuel prices.
"In view of the West Asia crisis, the central excise duty on petrol and diesel for domestic consumption has been reduced by Rs 10 per litre each. This will provide protection to consumers from a rise in prices," Sitharaman said in a post on X.
She added that the government has also imposed export duties on diesel and aviation turbine fuel (ATF) to ensure adequate domestic availability amid supply uncertainties. In a major move, a special additional excise duty of Rs 50 per litre has been imposed on ATF.
Echoing similar views, Union Commerce and Industry Minister Piyush Goyal termed the move a decisive step to safeguard citizens from global turbulence.
He said the duty cut would provide relief to households, while export curbs on diesel and ATF would help prioritise domestic supply and support economic stability.
"Despite the West Asia crisis causing ripples in global energy markets, the Centre has ensured direct price relief by reducing excise duty on petrol and diesel," Goyal said.
"By prioritising domestic supply through strategic export duties on diesel and ATF, the government is ensuring that India's growth engine remains unhindered," he added.
The ministers emphasised that the government remains committed to insulating the domestic economy from external shocks, even as geopolitical tensions continue to roil global energy markets.
(With inputs from IANS)
