Mumbai: Domestic equity markets opened subdued on Tuesday with benchmarks slipping about 0.2 per cent each amid a surge in crude oil prices and weak global cues.
Sensex opened at 72,633.68, down 138.04 points or 0.19 per cent.
Similarly, Nifty fell 47.80 points, or 0.21 per cent, to open at 22,732.45.
Sector-wise, Nifty Auto, Nifty Media, Nifty FMCG and Nifty Cement declined up to 0.64 per cent in morning trade. Consumer durables, metal and chemicals indices also traded lower. On the other hand, pharmaceuticals and healthcare stocks traded higher with Nifty Pharma and Nifty 500 Healthcare gaining up to nearly 1 per cent.
Analysts said the global macro backdrop remained unfavourable for equities with elevated crude prices and higher US bond yields adding to concerns.
“With Brent crude above $106 and the US 10-year at 5.23 per cent, the global macro construct continues to be unfavourable for equity markets,” they said.
However, attractive valuations among large-cap growth stocks could provide buying opportunities for long-term investors, the experts added.
According to them, the short-term setup remained bearish following the breakdown below 23,000 with derivatives positioning also reflecting increased caution.
Immediate support for the Nifty was seen at 22,650-22,700, while resistance was placed at 22,950-23,000.
In addition, provisional exchange data showed that foreign institutional investors (FIIs) remained net sellers for the third consecutive session and offloaded equities worth more than Rs 5,353 crore on Monday.
However, domestic institutional investors (DIIs) continued to provide support and remained net buyers and purchased equities worth Rs 5,189 crore.
Moreover, international benchmark Brent crude was trading at $106.87 a barrel, up more than 1 per cent, while US West Texas Intermediate (WTI) crude was at $93.99, also gaining more than 1 per cent.
Asian equities were also under pressure with Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s KOSPI declining by up to 1 per cent in early trade.
Overnight on Monday, US shares ended lower with the S&P 500 falling 0.77 per cent and Nasdaq declining 0.92 per cent.
(IANS)
