Mumbai: Domestic equity market benchmarks opened on a flat note on Wednesday with crude oil prices surging to almost $92 and rising global bond yields dampening appetite for risk assets.
Sensex opened at 77,218.05, down 17.41 points or 0.02 per cent, while Nifty started the session at 24,152.05, declining 2.85 points or 0.01 per cent.
Sectorally, IT stocks led gains among sectoral indices in early trade with Nifty IT rising 0.82 per cent, while most other sectors remained subdued. Nifty MidSmall IT & Telecom gained 0.59 per cent, followed by Nifty Realty and Nifty REITS & Realty, which rose up to 0.2 per cent each.
Among the declining indices, Nifty Metal fell 0.35 per cent, followed by Nifty Auto which declined 0.14 per cent. Nifty MidSmall Healthcare dropped 0.10 per cent, Nifty Pharma, Nifty Chemicals and Nifty500 Healthcare declined 0.09 per cent each.
Analysts said the ongoing weakness was primarily driven by rising crude oil prices and higher bond yields globally.
They said uncertainty over the Middle East conflict has pushed crude prices higher, raising concerns over inflation and putting upward pressure on bond yields adding that US 30-year yields are at their highest level since 2007.
However, strong domestic fundamentals, improving GDP and earnings growth prospects for FY27 and robust domestic liquidity are helping the Indian market remain resilient.
Long-term investors could use the weakness to accumulate quality growth stocks, particularly as momentum remains stronger in the mid- and small-cap segments, according to the market experts.
Additionally, Asian markets also declined amid continued weakness in semiconductor stocks, while crude oil prices rose to their highest level in more than three weeks as international benchmark Brent crude traded around $92 per barrel after Iran took a tougher stance and said the Strait of Hormuz would remain closed, while the US ruled out extending the ceasefire.
(IANS)
