Indian equity markets started the day on a flat note on Tuesday, with investors exercising caution due to ongoing geopolitical tensions in the Middle East despite a decrease in crude oil prices. The Sensex opened 0.08% lower at 77,649.63, while the Nifty fell by 0.09% to 24,216.05.
In sectoral terms, IT, cement, and metal stocks showed strength amidst the overall weaker trend. Nifty IT rose by 0.46%, while Nifty Cement and Nifty Metal indices saw gains of 0.51% and 0.33%, respectively. Auto and FMCG stocks also experienced marginal increases.
However, consumer durables declined by 0.22%, with financial services, pharma, and media stocks also facing pressure. Among the Nifty constituents, HDFC Bank, Eternal, Maruti Suzuki, Sun Pharma, and Dr. Reddy’s Laboratories were the top losers in early trading.
Market experts noted that the opening mirrored subdued GIFT Nifty trends, reflecting concerns over geopolitical developments impacting global energy markets and influencing investor sentiment. They anticipate stock-specific movements driven by first-quarter earnings, with Nifty expected to trade cautiously but constructively due to buying interest near key support levels supporting a broader recovery trend.
From a technical viewpoint, the 24,300-24,400 zone acts as immediate resistance, with 24,100 as a crucial support level. Analysts suggested that a sustained move above the resistance could strengthen bullish momentum, while a breach below the support might trigger fresh selling pressure, potentially pulling the index towards the 24,000 mark.
In the international arena, oil prices decreased as reports of US-mediated diplomatic efforts with Iran emerged, despite ongoing tensions between the two nations. Brent crude fell by 0.87% to trade below $90 a barrel, while US West Texas Intermediate (WTI) crude dropped by 0.67% to $81.92 a barrel.
Asian markets displayed mixed trends, with Japan’s Nikkei and South Korea’s Kospi rising by around 2% and 4%, respectively, while Hong Kong’s Hang Seng saw a slight decline. On Wall Street, the S&P 500 decreased by 0.19%, and the Nasdaq Composite slipped by 0.05%.
