Mumbai: Domestic equity benchmarks opened lower on Monday weighed down by weakness in information technology (IT) sector stocks.
Sensex opened at 72,990.04, down 133.79 points or 0.18 per cent, while Nifty slipped 75.60 points or 0.33 per cent to 22,524.40.
Among sectoral indices, Nifty IT was worst performer and declined over 2 per cent.
Meanwhile, Nifty MidSmall IT & Telecom, Nifty Realty, Nifty Oil & Gas, Nifty PSU Bank, Nifty Consumer Durables, Nifty Cement and Nifty Auto decreased by up to 1 per cent.
On the other hand, Nifty Private Bank advanced 0.49 per cent, while pharmaceuticals and healthcare-related indices showed resilience.
According to analysts, Brent crude prices have cooled marginally but remain elevated, which could limit the scope for a sustained rally in equities.
“Despite the slight cooling in Brent crude price, it continues to remain high and could constrain any rally from the recent lows. Investors should focus on value-buying opportunities that have emerged from the correction while remaining mindful of the macroeconomic risks posed by elevated crude prices,” they said.
They also pointed to the sharp correction in midcap and smallcap shares, attributing last week’s broader market weakness largely to margin-funded trade liquidation.
However, they noted that the correction could create opportunities in select high-growth segments.
The cooling of the global artificial intelligence trade is proving favourable for India, with foreign portfolio investor (FPI) outflows from South Korea and Taiwan exceeding those from India in recent months, according to the experts.
In the previous trading session (October 23), foreign institutional investors (FIIs) were net buyers of equities worth Rs 887 crore. Domestic institutional investors (DIIs) extended their buying streak to four sessions, purchasing equities worth Rs 3,236 crore.
On the commodities front, Brent crude declined more than 2 per cent to around $114 per barrel, while US benchmark West Texas Intermediate (WTI) crude fell over 2 per cent to $100.70 per barrel.
In Asia, markets began on a cautious note as oil prices retreated from six-month highs with investors bracing for a busy week of central bank meetings and corporate earnings that could further test confidence in the AI-driven rally.
(IANS)
