Indian shares opened lower on Friday as investors adopted a cautious approach amid rising crude oil prices and uncertainty in global markets ahead of the release of key US economic figures.
The Sensex opened at 78,516.08, down 438.68 points, or 0.56 per cent, from the previous close. The Nifty also opened 97.10 points lower, down 0.39 per cent, at 24,538.90.
Banking and financial counters faced selling pressure during the initial hours of trade, while cement stocks also moved lower.
The Nifty Financial Services Ex-Bank, Nifty Cement, Nifty PSU Bank and Nifty Private Bank indices declined by up to 1 per cent.
Several other segments, however, witnessed buying activity.
IT, automobile, real estate, FMCG and telecom stocks moved higher, with the Nifty IT, Nifty MidSmall IT & Telecom, Nifty Auto, Nifty Realty and Nifty FMCG indices gaining as much as 1.5 per cent.
Analysts said the domestic market continues to trade within a consolidation range while gradually showing signs of upward movement.
Market observers also pointed to several trends emerging from the first-quarter earnings season that investors need to consider while assessing market prospects.
Experts highlighted the strong performance of several sectors as one of the key positives from the Q1 results.
Companies operating in financial services, automobiles, pharmaceuticals and telecommunications have generally recorded double-digit revenue and profit growth, helping their shares withstand market volatility.
The IT sector remains under pressure. Slower business growth and uncertainty over the potential impact of artificial intelligence continue to weigh on investor sentiment.
Commodity-linked businesses, particularly metals and oil companies, have delivered uneven results, creating a mixed picture for the segment.
Analysts expect financial services, automobiles, telecom and capital goods to retain their growth momentum in the coming period.
Oil prices moved upwards in international markets as geopolitical tensions continued to influence supply and demand expectations.
Brent crude, the global benchmark, rose more than 1 per cent to $83.83 per barrel.
A sustained rise in oil prices could remain a concern for India. Higher import costs can increase inflation, raise business expenses and affect the country’s trade balance.
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