Mumbai: India equity benchmark indices opened flat on Tuesday amid buying in IT and realty sector shares.
At the opening bell, Sensex was at 71,951.73, up 27.05 points or 0.04 per cent. Meanwhile, Nifty began trading session at 22,364.15, up 0.80 points or flat.
Sector-wise, Nifty IT, Nifty Midsmall IT & Telecom and Nifty Realty jumped up to up 2 per cent. Nifty PSU Bank was up 0.31 per cent, Nifty FMCG up 0.22 per cent and Nifty Oil & Gas up 0.20 per cent.
On the downside, healthcare and pharmaceuticals shares witnessed selling pressure as Nifty Midsmall Healthcare fell, Nifty 500 Healthcare, Nifty Pharma and Nifty Healthcare declined up to 0.75 per cent.
Market experts said there are no triggers to change ongoing trend of sustained FII selling and DII buying in the cash market.
But with the US 10-year bond yield above 5.2 per cent, FIIs are likely to continue selling in cash market. With net inflows into mutual funds touching a record high of Rs 38,307 crore in September, DIIs will continue to absorb selling from FIIs, experts said.
Moreover, CPI inflation at 5.54 per cent came on expected lines with food inflation at 7.74 per cent and Brent above $100. A rate hike by the RBI in December is a foregone conclusion and will be margin accretive for banks, they added.
Technical analysts said recovery construct has weakened significantly, but day will start with hopes of bounce back as yesterday’s slippage paused without breaking the recent low.
Such an upmove would need to push beyond 22,435 to signal strength, inability to do so could pave way for drop to 22,070-21,900, they said.
Additionally, Asian equities traded lower as AI rally came under fresh pressure ahead of key earnings season.
Nasdaq ended lower on Monday as oil prices surged following attacks on Saudi airport, while investors awaited start of third-quarter bank earnings and key economic data this week.
(IANS)
