Markets open subdued as IT, pharma stocks offset banking weakness
Mumbai, July 30
Domestic equity benchmarks opened on a subdued note on Thursday amid mixed global cues, as gains in information technology and pharma stocks were offset by weakness in banking and realty shares.
Sensex opened at 77,638.86, down 15.74 points or 0.02 per cent, while Nifty opened at 24,249.55, lower by 0.65 points.
Among the sectoral indices, Nifty IT was the top gainer, rising 1.39 per cent, followed by Nifty Pharma, Nifty Healthcare, Nifty MidSmall IT & Telecom, and Nifty Auto, which gained up to 0.54 per cent.
In contrast, Nifty Realty declined 0.80 per cent, followed by Nifty Chemicals, which was down 0.45 per cent, while Nifty Private Bank fell 0.42 per cent.
According to market experts, the Indian market continues to indicate a potential breakout trend, although several global headwinds are limiting the upside momentum.
"The spike in Brent crude prices to near $90 following the escalation of the US-Iran conflict is a strong headwind for markets," they said.
Experts noted that the US Federal Reserve's decision to keep interest rates unchanged, though widely expected, turned out to be negative for equities as the decision was split 9-3, with three members voting for a rate hike to curb inflation.
However, they believe the Indian market could remain relatively resilient.
Weakness in global chip stocks has prompted foreign portfolio investors (FPIs) to shift allocations, with FPIs turning net buyers in Indian equities so far in July.
Brent crude -- the international oil benchmark -- declined 1.75 per cent to $89.15 per barrel, while US West Texas Intermediate (WTI) crude fell 1.47 per cent to $83.21 per barrel.
Asian stocks traded mixed. Major indices such as the Nikkei, Hang Seng, and KOSPI were up 0.72 per cent, down 0.02 per cent, and lower by 0.57 per cent, respectively.
US stocks ended lower, with the S&P 500 declining 1.52 per cent, while the Nasdaq ended down 1.74 per cent.
— IANS
Reader Comments
Mixed cues as always! The oil price volatility is concerning for our import-dependent economy. But I'm cautiously optimistic about IT sector — the FII inflows are a good sign. Let's see if Nifty holds 24k level 📈
Sensex down 15 points and they call it 'subdued'? Bhai, this is practically flat! The real story is FIIs coming back — that's what matters for retail investors like us. Just wish banks would pick up the pace.
As an NRI watching from the US, this feels like our markets are dancing to US Fed's tune. The rate decision split 9-3 is more interesting than the actual outcome. I'm keeping an eye on rupee-dollar movement too.
Pharma saving the day again! But realty falling 0.80% is predictable — with high interest rates, who's going to buy property? Government needs to do something about affordable housing if they want this sector to recover.
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