Sensex, Nifty Open Lower On Crude, Global Cues

Sectoral Trends: Metal And Realty Under Pressure

Among sectors, Nifty Metal fell more than 3 per cent, making it the biggest decliner in early deals, followed by Nifty Realty, which lost over 2 per cent.

Consumer durables, financial services, banking, auto and cement sector indices fell up to 1 per cent.

However, Nifty IT was the only sectoral index in positive territory and was trading 0.10 per cent up.

Crude Prices And Bond Yields Weigh On Sentiment

"Headwinds for the market are getting stronger with the escalation in the Middle East conflict. Brent crude has shot up to around $108," according to market experts.

If elevated crude prices sustain or rise further, the impact on India's economic growth and corporate earnings could be significant, they said, adding that rising US bond yields were another major headwind.

The US 10-year Treasury yield was around 4.96 per cent, approaching the 5 per cent level that is widely viewed as a potential inflection point for global equities, according to them.

Understanding Why The 5% Treasury Yield Level Matters: When US Treasury yields rise, US government bonds become a more attractive, safer investment relative to riskier assets like emerging-market stocks. A yield nearing 5% signals that investors can earn a substantial, low-risk return simply by holding US debt — which often triggers a shift of capital away from equity markets worldwide, including India, as investors rebalance toward safer, higher-yielding US assets.

IPO Market Continues To Draw Liquidity

Analysts said the Indian IPO market was currently attracting significant investor interest, with heavy oversubscription and listing gains drawing funds away from the secondary market.

Key Technical Levels

On the technical front, analysts said the Nifty could find the next downside targets at 23,260-23,000, while yesterday's long lower wick suggested that a base formation could be underway, despite weak recovery attempts. The upside marker remains at 23,520.

Investors should remain cautious given the challenging global and domestic environment, the experts said.

Global Cues: Wall Street Selloff

Additionally, Asian markets traded lower after rising oil prices sparked a Wall Street selloff. US stocks closed lower in the last session as stronger producer inflation data and rising oil prices fuelled concerns over another Fed rate hike.

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