Sensex And Nifty Begin Trading On A Muted Note, Weak Global Markets And Rising Crude Oil Prices Keep Investors Cautious

Mumbai: Indian shares started the trading day on a subdued note on Tuesday due to higher crude oil prices and a lackluster performance in global markets, prompting cautious behavior among investors. The Sensex started at 72,633.68, slipping 138.04 points, or 0.19 percent, while the Nifty opened at 22,732.45, down by 47.80 points, or 0.21 percent.

Various sectors experienced a decline in early trade, with companies in the auto, FMCG, consumer durables, metal, and chemical sectors witnessing a drop of up to 0.64 percent. Pharmaceutical and healthcare stocks provided a ray of hope, with their indices rising by nearly 1 percent. Nevertheless, crude oil prices above $107 added to market concerns, leading the Sensex to plunge 1,124 points and the Nifty falling 1.56 percent.

PSU banks also suffered losses. Analysts attributed the unfavorable global backdrop for equities to the rising crude prices, Brent crude trading at $106.87, up more than 1 percent, and US West Texas Intermediate reaching $93.99, up over 1 percent. Additionally, the US 10-year bond yield of 5.23 percent was cited as a disheartening factor.

Experts noted that attractive valuations in some large-cap growth stocks might still present potential opportunities for long-term investors. The near-term outlook for the Indian market appeared bearish, with analysts citing Nifty's dip below 23,000 and derivatives positioning indicating heightened caution. Support was identified at 22,650-22,700, while resistance was noted at 22,950-23,000.

Foreign institutional investors sold Indian equities worth over ₹5,353 crore on Monday, marking the third consecutive day of net selling, according to provisional exchange data. However, domestic institutional investors partially offset the outflow with net purchases of ₹5,189 crore. The weakness was not confined to India, as Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s KOSPI also saw a decline of up to 1 percent in early trade.

On Monday, the S&P 500 closed 0.77 percent lower, while the Nasdaq dropped 0.92 percent. Investors are now keeping a watchful eye on whether domestic buying could provide a buffer against further selling as crude prices and global yields remain elevated.