Indian benchmark indices opened lower on Tuesday, with the Sensex falling over 300 points and the Nifty slipping below the 24,300 level as rising crude oil prices and renewed geopolitical tensions weighed on investor sentiment.
The Sensex opened at 77,418.97, compared with its previous close of 77,728.16, and was trading at around 77,442.77, down 285.39 points or 0.37 per cent.
The Nifty opened at 24,223.85 against its previous close of 24,287.65 and was trading at around 24,230.40, down 57.25 points or 0.24 per cent.
Brent crude rose above USD 91 per barrel, while West Texas Intermediate (WTI) crude crossed USD 85 per barrel amid renewed uncertainty over the US-Iran situation and concerns surrounding the Strait of Hormuz.
US President Donald Trump has ruled out extending the existing US-Iran ceasefire arrangement, while tensions have also risen over efforts to reopen shipping through the Strait of Hormuz. The developments have raised concerns over possible disruptions to global energy supplies.
At the time of reporting, Brent crude was trading around USD 91.41 per barrel, while WTI crude was around USD 85.26 per barrel.
In the equity market, broader indices largely traded in positive territory, even as several sectoral indices remained under pressure.
Nifty IT and FMCG were among the major sectoral laggards, declining over one per cent in early trade. Nifty Realty and Metal were among the top gainers, rising over one per cent.
On the BSE, M&M, Eternal, Sun Pharma, Maruti, BEL, Tata Steel and Reliance were among the major gainers. Infosys, IndiGo, Asian Paints, HCLTech, Tech Mahindra and Larsen & Toubro were among the prominent losers.
On the NSE, ONGC, M&M, Bajaj Auto, Grasim, Sun Pharma, Coal India and Axis Bank were among the top gainers, while Infosys, Bharti Airtel, IndiGo, Hindustan Unilever, Bajaj Finserv and ITC were among the major losers.
Market analyst Vipin Dixena said Indian equities were likely to remain under pressure amid elevated crude prices and renewed geopolitical concerns.
He noted that the Nifty had declined for five consecutive sessions and that foreign institutional investor selling remained a concern. However, strong buying by domestic institutional investors and the recovery from Monday’s intraday lows suggested that domestic investors continued to provide some support to the market.
From a technical perspective, Dixena said the 24,200 level was an important support zone for the Nifty.
“On the upside, 24,360-24,400 remains the immediate hurdle, and a sustained move above this zone could bring some recovery momentum back into the index,” he said.
The Nifty had declined for the fifth consecutive session on Monday, falling 78 points to close at 24,287.65, its lowest level since July 29. The Sensex had closed 281.62 points lower at 77,728.16.
Devarsh Vakil of HSL Prime Research said the short-term trend for the Nifty remained weak as the index was trading below its short-term averages.
He placed immediate support around 24,200, close to the 50-day exponential moving average, while identifying 24,430 and 24,600 as key resistance levels.
-ANI
