Markets open flat as IT and pharma gains offset weakness in banking stocks

Domestic equity markets opened on a subdued note on Thursday, with gains in information technology and pharmaceutical shares largely offset by weakness in banking and real estate stocks as investors assessed mixed global cues and lingering geopolitical risks.

The BSE Sensex opened 15.74 points, or 0.02 per cent, lower at 77,638.86, while the NSE Nifty 50 slipped 0.65 points to 24,249.55 in early trade.

Technology stocks led the gains, with the Nifty IT index climbing 1.39 per cent. The Nifty Pharma, Healthcare, MidSmall IT & Telecom and Auto indices also traded higher, advancing by as much as 0.54 per cent.

On the downside, the Nifty Realty index fell 0.80 per cent, followed by declines in the Chemicals and Private Bank indices, which lost 0.45 per cent and 0.42 per cent, respectively.

Market participants said Indian equities continued to show signs of a potential breakout, although gains remained capped by global uncertainties.

Analysts pointed to the recent rise in Brent crude prices to around $90 a barrel following the escalation of the US-Iran conflict as a key concern for investors, given its potential impact on inflation and corporate earnings.

They also said the US Federal Reserve's decision to leave interest rates unchanged had weighed on market sentiment after three policymakers voted in favour of a rate increase, highlighting persistent concerns over inflation.

Despite these headwinds, analysts expect Indian equities to remain relatively resilient, supported by continued foreign investor interest. Weakness in global semiconductor stocks has prompted foreign portfolio investors to increase allocations to India, making them net buyers of domestic equities so far this month.

In the commodities market, Brent crude fell 1.75 per cent to $89.15 a barrel, while US West Texas Intermediate crude declined 1.47 per cent to $83.21.

Across Asia, markets were mixed. Japan's Nikkei advanced 0.72 per cent, Hong Kong's Hang Seng edged down 0.02 per cent, while South Korea's KOSPI slipped 0.57 per cent.

Overnight, Wall Street ended lower, with the S&P 500 falling 1.52 per cent and the Nasdaq Composite losing 1.74 per cent.

With IANS inputs