Mumbai, Aug 19: Indian equity markets remained under pressure on Wednesday as rising crude oil prices, higher global bond yields and continuing geopolitical tensions weighed on investor sentiment.
The Sensex opened at 77,218.05, down 17.41 points, or 0.02 per cent, while the Nifty 50 started at 24,152.05, marginally lower by 2.85 points, or 0.01 per cent.
The market mood remained cautious after the benchmarks had declined for the sixth consecutive session on Tuesday. Investors continued to monitor developments in the Middle East, particularly uncertainty surrounding the Strait of Hormuz and US-Iran tensions.
Brent crude prices moved close to $92 a barrel, raising concerns over higher import costs and inflation. The rise in oil prices, along with elevated US Treasury yields, has also put pressure on the Indian rupee and reduced investor appetite for riskier assets.
Sectoral performance was mixed in early trade. The IT sector was among the stronger performers, with Nifty IT gaining 0.82 per cent. Nifty MidSmall IT & Telecom also rose 0.59 per cent, while Realty and REITs & Realty indices posted modest gains.
Metal and automobile stocks remained weak, with Nifty Metal falling 0.35 per cent and Nifty Auto declining 0.14 per cent. Healthcare, pharmaceutical and chemical stocks also traded marginally lower.
Despite the weak global environment, domestic liquidity and India’s underlying economic growth continue to provide support to the market. Foreign investors bought Indian shares worth around Rs 1,652 crore on Tuesday, while domestic institutional investors purchased shares worth about Rs 2,579 crore.
Market participants are expected to closely watch crude oil prices, developments in the Middle East, currency movements and global bond yields for further direction.
Analysts said the near-term outlook could remain volatile, while long-term investors may continue to focus on fundamentally strong companies and accumulate quality stocks gradually during periods of market weakness.