Mumbai, March 16
The benchmark equity indices opened lower on Monday but soon turned flat in early trade as investors remained cautious amid escalating geopolitical tensions in Middle East.
The 30-scrip basket opened 148 points or 0.19 per cent lower at 74,415 compared with the previous close. The index later pared losses and traded nearly flat at 74,611, up about 50 points in early trade.
Similarly, Nifty began the session on a flat note at 23,116, rising 35 points or 0.15 per cent from Friday's close, as investors tracked developments in the ongoing tensions involving Iran, Israel, and the United States.
Infosys was among the major laggards, along with Asian Paints, Maruti Suzuki, Wipro, and Mahindra & Mahindra, which also traded lower.
Market sentiment remained fragile due to concerns over the widening West Asia conflict, tanker attacks in the Gulf region, and potential disruptions in the Strait of Hormuz, a critical global oil supply corridor.
Sector-wise, Nifty FMCG emerged as the top gainer, rising 0.51 per cent to 48,166.70. Nifty Pharma advanced 0.27 per cent, while Nifty Metal added 0.19 per cent. On the losing side, Nifty Chemicals slipped 0.24 per cent to 26,256.10.
Analysts said domestic markets may witness a slightly firm to steady opening, supported by GIFT Nifty, which was trading around 23,248, up nearly 49 points or 0.21 per cent, indicating a modest recovery attempt after the recent correction.
Technically, analysts see 23,000-23,100 as immediate support for the Nifty 50, while 23,400-23,500 may act as a key resistance zone in the near term.
Foreign institutional investors continued their selling streak, extending it to the 11th consecutive session on March 13, offloading equities worth over Rs 10,000 crore, while domestic institutional investors provided support with purchases of nearly Rs 10,000 crore, helping cushion the market.
Experts noted that investor sentiment remains cautious amid rising crude prices, rupee weakness and geopolitical tensions.
Since the latest escalation in the Middle East, markets have seen heightened volatility as Brent crude prices moved toward the $90-$100 per barrel range, raising concerns over inflation and potential supply disruptions.
Moreover, analysts believe a decisive break above the 23,300-23,500 zone could trigger short covering and push the index toward 23,800-24,000, while a fall below the 23,000 mark may extend losses toward the 22,800-22,700 support band.
- IANS
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