Indian equity markets opened lower on Friday as weak global cues, rising crude oil prices and renewed concerns over inflation and interest rates weighed on investor sentiment.
The Sensex fell nearly 600 points, or 0.79%, to open at 74,309.16. The Nifty50 declined 207.50 points, or 0.88%, to begin trading at 23,270.30.
Metal stocks faced the strongest pressure in early trading, with the Nifty Metal index dropping more than 3%. The Nifty Realty index followed with a decline of over 2%.
Consumer durables, financial services, banking, automobiles and cement stocks fell by up to 1%.
Nifty IT was the only sectoral index trading in positive territory, rising 0.10%.
Market experts said the escalation of tensions in the Middle East had intensified pressure on equities, with Brent crude climbing to around $108 per barrel.
A sustained rise in oil prices could affect India’s economic growth and corporate earnings, they warned.
Rising US bond yields added to investor concerns. The 10-year US Treasury yield stood near 4.96%, close to the 5% level considered significant for global markets.
Analysts pointed to strong investor participation in the initial public offering market. Heavy oversubscription and listing gains may be diverting funds from the secondary market, they said.
Technically, the Nifty could face support around 23,260–23,000, while 23,520 remains a key upside level.
Analysts noted that the previous session’s long lower wick could indicate early base formation, despite the weak recovery.
Asian markets traded lower after higher oil prices contributed to a sell-off on Wall Street.
US stocks had ended the previous session down following stronger producer inflation data and concerns over another Federal Reserve rate hike.
Also Read: Mukesh Ambani Hails Arundhati Bhattacharya As A Role Model For Women Leaders
To read more such news, download Bharat Express news apps
