New Delhi, Oct 1: Indian equity markets began the new month on a cautious note on Thursday, with benchmark indices opening lower as continued selling by foreign institutional investors (FIIs) weighed on market sentiment.
At around 9:27 am, the Sensex stood at 72,304.37, down 175.92 points, or 0.24 per cent. The index had opened at 72,192.89.
The Nifty 50 was trading at 22,535.90, declining 84.55 points, or 0.37 per cent, after opening at 22,543.70.
FII selling remains a key concern
Persistent selling by overseas investors remained one of the major factors influencing market sentiment. Investors continued to monitor global developments closely, particularly movements in crude oil prices and geopolitical developments in West Asia.
The weakness in the opening session was also reflected in select sectors, with auto and cement stocks coming under pressure and contributing to the decline in the broader benchmarks.
Easing crude prices offer some relief
A moderation in crude oil prices provided some support to investor sentiment. Lower oil prices are particularly relevant for India as the country remains heavily dependent on imports to meet its energy requirements.
A sustained decline in crude prices could help ease pressure on India’s import bill, inflation and corporate costs, although market participants remain watchful of geopolitical developments that could quickly influence energy prices.
US-Iran developments in focus
Investors are also keeping a close watch on developments surrounding a possible US-Iran peace agreement. Any progress on the diplomatic front could help reduce concerns over disruptions to global energy supplies and improve overall risk sentiment.
However, market participants remain cautious as global uncertainties and foreign fund outflows continue to influence domestic equities.
With the October trading session beginning on a weak note, investors are likely to track FII flows, crude oil prices, global markets, geopolitical developments and sector-specific movements for further direction.