Mumbai, Sep 8: Indian equity markets opened lower on Tuesday as rising crude oil prices and weakness in IT and auto stocks weighed on investor sentiment. Caution was also visible ahead of the US Federal Reserve’s upcoming interest-rate decision.
The Nifty 50 opened 36.05 points, or 0.15 per cent, lower at 23,743.10, while the Sensex fell more than 150 points, or 0.21 per cent, to 75,970.28.
IT and auto stocks came under pressure in early trade, with both sectoral indices declining by around 1 per cent. The Nifty Oil & Gas index slipped 0.48 per cent, while the Nifty Private Bank index fell 0.39 per cent. The Nifty Metal index bucked the trend, rising 0.45 per cent.
Investors remained cautious as higher crude prices raised concerns about inflation and corporate costs. Market sentiment was also affected by expectations around US monetary policy and continued fund flows into the strong IPO pipeline.
Analysts said the Indian market has been witnessing a gradual decline for several weeks. However, the recent correction in large-cap stocks could create opportunities for investors, particularly in companies with strong fundamentals and reasonable valuations.
On the technical front, the Nifty is likely to face resistance around 23,860, while 23,720 remains an important support level. A sustained break below this level could take the index towards 23,570 and 23,260.
Asian markets also traded mixed during Tuesday’s morning session as investors assessed regional economic data and rising geopolitical tensions in the Middle East.
Crude oil prices continued to move higher amid concerns that an escalation in the Middle East could disrupt global energy supplies. Fresh warnings from Iran over possible retaliation against further US strikes have added to uncertainty in global markets.
With global cues remaining mixed, investors are expected to closely track crude oil prices, geopolitical developments and signals from the US Federal Reserve for the market’s next direction.
