MUMBAI: Indian equity markets opened lower on Tuesday, with the Sensex falling over 300 points and the Nifty slipping below the 22,690 mark, as crude oil prices hovered near USD 115 per barrel and investors remained cautious ahead of the US Federal Reserve’s monetary policy decision later this week.
Brent crude was trading at around USD 114.91 per barrel while crude oil was trading at around USD 100.85 per barrel at the time of reporting. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited noted, “Brent crude remaining above USD 114 and the US 10-year bond yield hovering around 4.97% continue to be near-term headwinds for the market.”
Both the benchmark indices opened with a gap-down. Sensex opened at 73,484.38 against the previous close of 73,606.75 and was trading at around 73,229.2, down 377.47 points or 0.51 per cent at the time of reporting. Likewise, Nifty opened at 22,708.80 and was trading at around 22,676.70, down 76.50 points or 0.34 per cent against the previous close of 22,753.20.
Sectorally, the market witnessed mixed performance in early morning trade, with metal, IT, FMCG, oil and gas, and cement stocks facing selling pressure, while most broader market indices traded in the green.
On NSE, Tata Consumer, BEL, Max Health, Bajaj Auto, BSE, Sun Pharma, NTPC, Eternal, Hindalco, Power Grid, Maruti, LT, Indi Go, Dr. Reddy, Bharti Airtel, Nestle, among others were the top gainers. Infosys, Asian Paints, Hindustan Unilever, JSW Steel, TCS, HCL Tech, Bajaj Finserv, Grasim, Cipla, ICICI Bank, ONGC, Coal India, Tech Mahindra, ITC, Reliance, TMPV, Titan, among others were the top losers.
On BSE, BEL, Eternal, Power Grid, Maruti, NTPC, Indi Go, Sun Pharma, LT, M&M, Adani Ports, Kotak Bank, among others were the top gainers. Infosys, TCS, Asian Paints, Hindustan Unilever, Bajaj Finserv, Tech Mahindra, HCL Tech, Reliance, ITC, Trent, Titan, among others were top losers.
Vijayakumar added, FIIs will remain in a risk-off mode in this adverse macro setting. However, the improving fundamentals of the corporate sector as reflected in Q2 earnings and the robust domestic fund inflows will continue to support the market.
“The imminent US mid-term elections will have an impact on the market. Polls indicate the Republican Party losing the House of Representatives and a tough fight in the elections to the Senate. A big setback to the Republican Party will considerably erode the President’s power. But the mercurial President Trump may react in an unexpected manner in his Iran strategy. There can be unexpected developments in the Middle East, with consequences for crude prices. Investors may closely watch the developments and decide based on the emerging scenario. Value buying opportunities should not be missed,” he said.
Market analyst Vipin Dixena noted, “Elevated crude prices could increase input and transportation costs, pressure corporate margins and widen India’s import bill. Combined with currency risks and uncertainty around global interest rates, this could constrain earnings growth. However, quarterly results are creating selective opportunities.”
“Indian equities face renewed pressure today after Monday’s recovery. I believe the sustainability of any recovery will depend on whether domestic buying can continue to absorb foreign outflows,” he said.
“Technically, immediate resistance lies at 22,875–23,000, while support is around 22,500, followed by 22,250. A sustained move above resistance could extend the recovery, whereas a break below support may trigger renewed selling,” Dixena noted. (ANI)
