Source : INDIA TODAY NEWS
Stock markets opened lower on Tuesday, giving back some of the previous session’s gains as crude oil prices remained near $115 a barrel and investors turned cautious ahead of the US Federal Reserve’s policy decision later this week.
Weakness in IT stocks also weighed on sentiment, although buying in select auto, pharma and public sector bank shares offered some support.
The BSE Sensex was down 304 points, or 0.41%, at 73,302.33, while the NSE Nifty 50 slipped 55 points, or 0.24%, to 22,698.05 at around 9.25 am.
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The Nifty had briefly moved above 22,700 before slipping below that level, while the Sensex remained under pressure after the previous session’s recovery.
IT STOCKS LEAD LOSSES
The Nifty IT index fell 1.72%, making it the worst-performing major sectoral index in early trade. Infosys declined 2.55%, while TCS fell 1.72%. HCL Technologies and Tech Mahindra were also trading lower, down 0.77% and 0.84%, respectively.
The Nifty FMCG index slipped 0.42%, while the oil and gas index lost 0.68%. Private banks and financial services stocks also remained under pressure.
On the other hand, the Nifty Auto index gained 0.54%, while the pharma index rose 0.68%. The PSU Bank index advanced 0.61%, and the metal index added 0.28%.
Among Sensex constituents, BEL was the top gainer, rising 1.44%, followed by Eternal, which gained 1%. NTPC and Power Grid were also trading higher. Infosys, Hindustan Unilever and TCS were among the major laggards.
BROADER MARKETS SHOW MIXED TREND
Broader-market indices were relatively resilient compared with the benchmarks. The Nifty 500 edged up 0.04%, while the Nifty Midcap 50 gained 0.08% and the Nifty Midcap 100 rose 0.16%. The Nifty Smallcap 100 advanced 1.22%.
India VIX, the market’s volatility gauge, rose 0.67% to 17.28, signalling continued uncertainty.
CRUDE OIL, FED DECISION IN FOCUS
Crude oil remained a key concern for investors, with Brent crude futures trading near $115 a barrel amid continued geopolitical tensions in the Middle East. Persistently high oil prices can increase India’s import bill, add to inflationary pressures and weigh on corporate profit margins.
Investors are also watching the US Federal Reserve’s upcoming policy decision for signals on the interest-rate outlook and global financial conditions.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said elevated crude prices and high US bond yields remained near-term headwinds for the market, potentially keeping foreign institutional investors cautious.
“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,” he said.
Vijayakumar also flagged geopolitical uncertainty, including the possibility of unexpected developments in the Middle East affecting crude prices. He said investors should keep an eye on the evolving situation while not overlooking value-buying opportunities emerging from the market correction.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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SOURCE :- TIMES OF INDIA
