Sensex, Nifty open cautiously today; IT stocks bleed as crude, yields bite

Markets began cautiously on Friday, following the Nifty 50's most significant single-day drop since July 8, when it fell 1.64 percent to close at 23,063.10. The Sensex opened at 73,525.92, gaining 90.90 points or 0.12 percent by 9.20 am. Early gains were seen in IT stocks such as Bajaj Finserv, Shriram Finance, Power Grid, Bajaj Auto, and Axis Bank.

However, IT stocks continued to suffer on Friday due to rising US bond yields and a stronger dollar, which put pressure on the sector. Global macro conditions remained unfavorable, with the US 10-year Treasury yield reaching 5.22 percent and the 30-year yield hitting 5.48 percent. Brent crude oil, despite a slight easing, stayed above $105 per barrel due to a Houthi missile attack on Saudi Arabia, raising supply fears.

Foreign institutional investors sold equities worth ₹5,027 crore, while domestic investors bought ₹4,301 crore worth of shares. Analysts highlighted 23,000 as a crucial support level for the Nifty, and a break below this level could push the index towards 22,800-22,650. Bank Nifty, which fell 1.96 percent on Thursday, faces resistance at 55,700-56,000 and support at 55,000-54,800.

Long-term investors were advised to consider accumulating fundamentally sound stocks at current valuations.