Indian benchmark indices open lower as oil prices remain elevated; Nifty slips below 24,200

MUMBAI: Indian benchmark indices opened lower on Tuesday amid elevated oil prices, with both Sensex and Nifty opening with a gap-down. The Sensex fell over 70 points, while the Nifty slipped below the 24,200 level during early trade.

Sectorally, Nifty Metal emerged as the top gainer, surging 1.58 per cent, followed by Nifty Realty, IT, Telecom, Financial Services and Oil & Gas. Meanwhile, most broad-market indices traded in the red.

The Nifty opened at 24,175.75, against the previous close of 24,219.05, and hit a low of 24,128.85 during the early morning hours. At 9.21 am, the index was trading at 24,181.35, down 37.70 points, or 0.16 per cent, while the Sensex was trading at around 77,354.86, down 14.25 points, or 0.02 per cent.

On the BSE, Trent, TCS, Adani Ports, Eternal, ICICI Bank, Axis Bank, LT and Titan, among others, were the top gainers, while Power Grid, Sun Pharma, Bajaj Finance, NTPC, HCL Tech, Reliance, Asian Paints and BEL, among others, were the top losers.

On the NSE, Eternal, Trent, SBI Life, Adani Ports, TCS, Axis Bank, Tata Steel, Bharti Airtel, Infosys and ICICI Bank, among others, were the top gainers. Cipla, TMPV, Asian Paints, Hindalco, Maruti and BEL, among others, were the top losers, while Power Grid also featured among the major laggards.

In the commodity market, Brent crude was trading at around USD 92.40 per barrel at the time of reporting, while crude oil was trading at around USD 85.48 per barrel.

Market and banking expert Ajay Bagga noted, “Global markets are weak as they await AI bellwether Nvidia’s results on Wednesday. The US announced further sanctions on Iran. The oil markets did not react and were, in fact, lower on Monday post the event.”

Indian markets are likely to remain volatile on the Nifty and Bank Nifty monthly expiry day, with the recently introduced Closing Auction Session (CAS) also expected to add to uncertainty, according to Bagga.

Market analyst Vipin Dixena noted that the market was opening under pressure, with the Nifty trading below the previous close as global cues remained weak. “The immediate pressure is coming from continued US-Iran tensions, crude oil near USD 92 a barrel and caution ahead of the monthly F&O expiry,” the analyst said. However, he highlighted that “one positive factor is that FIIs turned buyers on Monday”.

“From a technical perspective, Nifty is now approaching the crucial 24,150-24,100 support zone. Below this, 24,000 becomes the next important support. On the upside, 24,300 remains the key hurdle; a sustained move above this level would improve the short-term structure and could open the way towards 24,500”, he said. (ANI)