Key Highlights

  • Weak open: Sensex opened at 73,484.38, down 122.37 points (0.17%), while Nifty started at 22,708.80, down 44.40 points (0.20%).
  • IT drags: Nifty IT fell over 1%, with Infosys, TCS and HCL Tech among the top losers; Cement and Oil & Gas indices also slipped.
  • Defensives gain: Nifty PSU Bank rose 0.68%, Pharma 0.44% and Healthcare 0.39%.
  • Macro headwinds: Brent crude above $114 per barrel and the US 10-year yield near 4.97% continue to weigh on sentiment.
  • Tug-of-war: FIIs sold Rs 1,462 crore on Monday, while DIIs bought Rs 2,609 crore, extending their buying streak to 10 sessions.

Mumbai: Indian equity benchmarks began Tuesday on a cautious note, weighed down by mixed global cues, elevated crude oil prices and the continuing West Asia conflict. The Sensex opened at 73,484.38, down 122.37 points or 0.17 per cent, while the Nifty started the session at 22,708.80, lower by 44.40 points or 0.20 per cent.

The early selling was concentrated in IT, cement and oil & gas stocks. Nifty IT fell more than 1 per cent, Nifty Cement declined 0.98 per cent and Nifty Oil & Gas slipped 0.53 per cent. Among Nifty constituents, Infosys, Asian Paints, Tata Consultancy Services (TCS), JSW Steel and HCL Tech were among the top losers, falling up to 2.78 per cent.

Defensive and banking pockets offered some support. Nifty PSU Bank gained 0.68 per cent, Nifty Pharma rose 0.44 per cent and Nifty Healthcare traded 0.39 per cent higher, suggesting investors were rotating towards safer sectors rather than exiting the market altogether.

Crude and Bond Yields Keep Pressure On

Market experts said Brent crude holding above $114 per barrel and the US 10-year bond yield hovering around 4.97 per cent remain near-term headwinds. For an oil-importing economy like India, sustained high crude prices raise concerns over inflation, the rupee and corporate input costs, which explains the pressure on oil & gas and cement counters.

“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 flow data reflects exactly this divide. Foreign institutional investors remained net sellers on Monday, offloading equities worth Rs 1,462 crore. Domestic institutional investors, meanwhile, extended their buying streak to 10 consecutive sessions with net purchases of Rs 2,609 crore. This steady domestic buying, largely backed by mutual fund and SIP inflows, has become the market’s key shock absorber during periods of foreign selling.

On the technical front, experts 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.” They added that a failure to hold above 22630 could expose the 22250-22000 zone, though a collapse is less expected.

Global cues were mixed. US markets closed higher overnight, with the S&P 500 up 0.7 per cent and the Nasdaq gaining 0.82 per cent, while Asian equities showed a mixed trend in early trade.

For traders, 22630 on the Nifty is the level to watch through the session. For long-term investors, the bigger signal lies in the institutional flows: as long as domestic money keeps absorbing foreign selling, dips driven by global headwinds may remain contained rather than turning into a deeper correction.