Sensex, Nifty open lower on mixed global cues; IT shares drag

MUMBAI — Domestic equity benchmarks opened lower on Tuesday amid mixed cues from global markets, elevated crude oil prices and West Asia conflict.

Sensex started at 73,484.38, down 122.37 points or 0.17 per cent. Similarly, Nifty began the trading session at 22,708.80, down 44.40 points or 0.20 per cent.

In early deals, selling was seen in IT, cement and oil & gas counters, while buying was seen in pharma, healthcare and PSU banks.

Nifty IT declined more than 1 per cent, while Nifty Cement decreased by 0.98 per cent and Nifty Oil & Gas slipped 0.53 per cent.

From Nifty, Infosys, Asian Paints, Tata Consultancy Services (TCS), JSW Steel and HCL Tech were among top losers in early trade, declining up to 2.78 per cent.

On the other hand, Nifty PSU Bank gained 0.68 per cent, Nifty Pharma was up 0.44 per cent and Nifty Healthcare was trading 0.39 per cent higher.

Market experts said Brent crude remaining above $114 per barrel and the US 10-year bond yield hovering around 4.97 per cent continue to be near-term headwinds.

"FIIs will remain in a risk-off mode in this adverse macro setting. However, improving fundamentals of the corporate sector as reflected in Q2 earnings and robust domestic fund inflows will continue to support the market," the analysts said.

The experts further said, “Both the recovery attempts and the easing on approach to 22690 are on anticipated lines. As long as dips are contained above 22630, we will remain interested in an upside play aiming for 23000 or even 23500 with volatility expectations once inside the 22800-900 region.”

Alternatively, inability to float above 22630 could expose 22250-22000, but a collapse is less expected, they added.

In addition, FIIs remained net sellers on Monday and offloaded equities worth Rs 1,462 crore. In contrast, DIIs extended their buying streak to 10 consecutive sessions with net purchases of Rs 2,609 crore.