Domestic equity markets opened lower Tuesday, with the benchmark indices declining around 0.2 per cent each. Rising crude prices and weak global cues pressured sentiment.
The Sensex opened at 72,633.68, down 138.04 points, or 0.19 per cent. The Nifty slipped 47.80 points, or 0.21 per cent, to open at 22,732.45.
Sectoral trends remained mixed. Nifty Auto, Media, FMCG and Cement declined by up to 0.64 per cent in morning trade. Consumer durables, metals and chemicals stocks traded lower.
Pharmaceutical and healthcare shares bucked the broader trend. Nifty Pharma and Nifty 500 Healthcare gained nearly 1 per cent.
Analysts said the global macro environment remained challenging for equities. Higher crude prices and rising US bond yields added to market concerns.
“With Brent crude above $106 and the US 10-year at 5.23 per cent, the global macro construct continues to be unfavourable for equity markets,” they said.
However, analysts noted that attractive valuations among large-cap growth stocks could create buying opportunities for long-term investors.
The short-term market setup remained bearish after the Nifty broke below 23,000.
Derivatives positioning indicated greater caution among traders. Analysts identified 22,650-22,700 as immediate support and 22,950-23,000 as resistance.
Provisional exchange data showed FIIs remained net sellers for a third straight session. They sold equities worth more than Rs 5,353 crore on Monday. DIIs remained net buyers and purchased shares worth Rs 5,189 crore.
Brent crude traded at $106.87 a barrel, up over 1 per cent. WTI stood at $93.99, gaining more than 1 per cent.
Asian markets remained under pressure. Nikkei, Hang Seng and KOSPI fell up to 1 per cent. Overnight, the S&P 500 dropped 0.77 per cent, while Nasdaq declined 0.92 per cent.
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