Sensex, Nifty open flat as higher crude prices weigh on sentiment

Indian equity benchmarks opened on a muted note on Tuesday as rising crude oil prices and losses in banking and financial stocks offset gains across information technology and consumer durables.

The BSE Sensex opened 32.67 points, or 0.04 per cent, lower at 78,509.77. The NSE Nifty 50 slipped 8.70 points, or 0.04 per cent, to begin the session at 24,575.10.

Information technology stocks were among the early gainers. The Nifty MidSmall IT and Telecom index advanced 0.73 per cent, while the Nifty Consumer Durables and Nifty IT indices rose 0.66 per cent and 0.63 per cent, respectively. Real estate, automobile and pharmaceutical shares also traded higher.

Banking counters, however, remained under pressure. The Nifty Private Bank index declined 0.64 per cent, while the Nifty PSU Bank index fell 0.62 per cent.

Market participants remained cautious as international crude oil prices extended their gains. Brent crude rose 0.41 per cent to $88.08 a barrel, while US West Texas Intermediate crude climbed 0.47 per cent to $82.52 a barrel.

Analysts said expensive crude remained a concern for Indian equities, although improving domestic fundamentals, stronger-than-anticipated June-quarter earnings and stability in the rupee offered support.

“Rising Brent crude price continues to be an irritant for the market even as other fundamentals exhibit strength,” market experts said.

They added that renewed buying by foreign institutional investors, supported by better-than-expected first-quarter results and a stable rupee, could help the market maintain a resilient and mildly positive bias.

Strong domestic consumption is expected to sustain corporate earnings growth through the 2026-27 financial year. Large inflows into Foreign Currency Non-Resident (Bank), or FCNR(B), deposits could also support the rupee and encourage further foreign portfolio investment, analysts said.

Foreign investors are also believed to be shifting part of their capital away from semiconductor-heavy markets such as South Korea and Taiwan while addressing their relatively low exposure to Indian equities.

However, recent foreign inflows have largely moved towards higher-valued sectors such as telecommunications, renewable energy, capital goods and pharmaceuticals, rather than comparatively cheaper large banking stocks.

From a technical perspective, the Nifty is expected to find immediate support between 24,400 and 24,450, while resistance is likely in the 24,750-24,800 range.

Holding above the support zone could preserve the index’s sideways-to-positive trend, with buying likely to emerge during declines. A decisive move above 24,800 could strengthen momentum and provide a clearer direction for the market.

Asian equities traded mixed during the early session. Japan’s Nikkei gained around 2 per cent and South Korea’s KOSPI rose more than 1 per cent, while Hong Kong’s Hang Seng declined 0.6 per cent.

US markets ended marginally lower on Monday. The S&P 500 slipped 0.06 per cent, while the technology-heavy Nasdaq declined 0.32 per cent.

With IANS inputs