Sensex, Nifty Open Lower On Crude, Mideast Tensions

IT Stocks Lead Sectoral Losses

Sector-wise, Nifty IT fell 3 per cent, which was the worst-performing sectoral index in early deals, while Infosys dropped 3.34 per cent, Tech Mahindra fell 2.73 per cent, HCL Technologies declined 2.60 per cent, Wipro lost 2.34 per cent and TCS fell 1.71 per cent.

Similarly, the Nifty MidSmall IT & Telecom fell about 2 per cent, while financial services, auto, private banks and oil & gas stocks were also trading lower.

Meanwhile, healthcare, consumer durables and metal stocks bucked the broader trend. Nifty Consumer Durables rose 0.38 per cent, Nifty Metal gained 0.39 per cent and Nifty Pharma advanced 0.27 per cent.

Crude Prices And IPO Boom Weigh On Sentiment

According to market experts, two strong headwinds were weighing on equities — Brent crude trading around $100 amid escalating US-Iran tensions and the booming IPO market drawing liquidity away from secondary-market stocks.

They noted that IPO listing gains, which have risen to about 22 per cent since June, are attracting retail and institutional investors even as Nifty's year-to-date return remains negative. Foreign institutional investors have sold equities worth about Rs 2.84 lakh crore through exchanges so far this year while investing around Rs 36,000 crore in IPOs.

Why This FII Shift Matters: The fact that FIIs are simultaneously pulling money out of listed stocks while pumping money into IPOs signals a shift in appetite — rather than exiting Indian markets altogether, foreign investors appear to be chasing the quick listing-day gains IPOs have offered, at the expense of steady secondary-market holdings. This helps explain why benchmark indices can keep sliding even as the primary (IPO) market stays buoyant.

Experts cautioned investors against blindly subscribing to IPOs driven by fear of missing out, saying that some issues could fall below their offer prices.

Key Technical Levels

The 23,500-23,260-23,000 zone is in focus. Alternatively, consolidation near 23,500 or an early move above 23,650 could create conditions for short covering towards 23,860-23,900, as per analysts.

Global Cues And Crude Oil

Additionally, Asian markets traded mixed with gains in semiconductor stocks supporting sentiment.

Moreover, crude oil prices rose for a fourth straight session after fresh Iranian attacks on US military assets escalated Gulf tensions.

Also Read: Sensex Falls 417 Pts on Oil Fears; Rupee Holds Firm at 94.48