Sensex, Nifty open lower as crude oil prices rise; IT and auto stocks drag
Mumbai, Sep 8
Indian equity benchmarks opened lower on Tuesday weighed by elevated crude prices with selling in IT and auto shares amid concerns over a possible US Federal Reserve rate hike this month.
Nifty 50 opened 36.05 points or 0.15 per cent lower at 23,743.10, while Sensex fell over 150 points or 0.21 per cent to 75,970.28.
Among sectoral indices, Nifty IT and Nifty Auto were top losers and plunged up to around 1 per cent in early trade. Nifty Oil & Gas fell 0.48 per cent, followed Nifty Private Bank which declined 0.39 per cent. On the other hand, Nifty Metal rose 0.45 per cent.
The market is now in its fifth week of a slow but steady downtrend, market experts said, citing elevated crude prices, selling in IT stocks, Fed rate hike fears and liquidity being absorbed by a booming IPO market.
They said the weakness in largecap stocks despite improving fundamentals could create opportunities for investors while a possible reversion to the mean in midcap and smallcap stocks may facilitate a rally in fundamentally sound largecaps.
"Instead of trying to time the market, investors can think about changing the weightage of portfolios towards largecaps where the risk-reward is favourable," according to them.
Technically, the Nifty is expected to find resistance at 23,860, while 23,720 is seen as an immediate downside marker. A break below that level could expose supports at 23,570 and 23,260, the analysts said.
In addition, Asian markets traded mixed in morning trade on Tuesday lacking a clear direction amid uneven regional economic data and renewed concerns over Iranian threats in the Persian Gulf.
Crude oil prices continued to climb as concerns over an extended Middle East conflict intensified after Iran warned of retaliatory action against any fresh US strikes on its assets, raising fears of potential supply disruptions.
— IANS
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