Sensex and Nifty open lower amid IPO rush and West Asia tensions

Indian equity benchmarks opened marginally lower on Monday as a packed initial public offering calendar and continuing tensions in the West Asia dampened investor sentiment.

The Nifty 50 began the session at 23,883.15, down 14.55 points, or 0.06 per cent. The Sensex declined 69.38 points, or 0.09 per cent, to open at 76,446.05.

Sectoral performance was mixed in early trade. The Nifty Media index fell 1.26 per cent, while the Nifty IT index declined 1.15 per cent, making them the biggest laggards.

The auto, chemicals, private bank, fast-moving consumer goods and cement indices also traded in negative territory. In contrast, the Nifty Oil and Gas index edged 0.06 per cent higher, while the metal, public-sector bank and realty indices gained as much as 0.38 per cent.

Analysts said the domestic market had been moving lower for four consecutive weeks despite encouraging economic indicators and corporate earnings.

Elevated crude oil prices and a surge in primary-market activity have emerged as the principal concerns.

Eleven mainboard IPOs are scheduled to enter the market this week, while several large offerings are also expected later this month. The rush of new issues could absorb substantial liquidity and shift investor attention away from the secondary market.

From a technical perspective, analysts identified 23,860 as the Nifty’s immediate downside marker and 23,960 as a resistance level. The 23,800 level remains an important support, and a sustained breach could push the index towards 23,570 before opening the possibility of a decline into the lower 23,000 range.

On the upside, the Nifty would need to cross the 24,150–24,215 zone to signal renewed strength.

Crude oil prices, meanwhile, rose on Monday as escalating tensions between the United States and Iran around the Strait of Hormuz fuelled concerns over possible disruptions to global supplies.

With IANS inputs