Mumbai, Sep 9: Indian stock markets opened on a weak note on Wednesday as rising crude oil prices and heightened tensions in the Middle East made investors cautious. Selling was particularly strong in IT stocks, weighing on the benchmark indices.
The Nifty 50 opened more than 100 points lower at 23,522.05, while the Sensex dropped over 350 points to 75,216.22. Both indices were down around 0.5 per cent in early trade.
Information technology stocks led the decline, with the Nifty IT index falling around 3 per cent. Infosys slipped 3.34 per cent, followed by Tech Mahindra at 2.73 per cent, HCL Technologies at 2.60 per cent, Wipro at 2.34 per cent and TCS at 1.71 per cent.
The Nifty MidSmall IT & Telecom index also declined nearly 2 per cent. Financial services, automobiles, private banks and oil and gas stocks were among the other sectors facing selling pressure.
Not all sectors moved lower. Healthcare, consumer durables and metal stocks showed resilience in early trading. The Nifty Consumer Durables index gained 0.38 per cent, while Nifty Metal and Nifty Pharma rose 0.39 per cent and 0.27 per cent, respectively.
Market sentiment was weighed down by two major concerns — the sharp rise in crude oil prices and the continued diversion of investor money towards the booming IPO market. Brent crude was trading around the $100-a-barrel mark as tensions involving the US, Iran and the wider Gulf region intensified.
Higher crude prices remain a concern for India because the country relies heavily on oil imports. A prolonged rise in energy costs could put pressure on inflation, import bills and corporate margins.
The strong IPO market is also influencing investor behaviour. Analysts said attractive listing gains in recent months have encouraged retail as well as institutional investors to allocate more money to new issues, even as the broader equity market continues to face pressure.
Experts have advised investors to avoid subscribing to IPOs simply because of the fear of missing out. They said investors should carefully assess the fundamentals and valuations of individual companies, as strong listing gains cannot be guaranteed.
For the Nifty, the 23,500-23,260-23,000 range remains an important support zone. Analysts said a move above 23,650 could improve sentiment and trigger short covering towards 23,860-23,900.
Meanwhile, Asian markets traded mixed, with gains in semiconductor stocks providing some support. Investors continued to track crude oil prices and developments in the Middle East for further direction.
With geopolitical uncertainty and higher energy prices keeping investors cautious, the domestic market is likely to remain sensitive to global developments in the near term.