Sensex, Nifty edge lower in early trade amid crude price rise, global concerns

Indian equity benchmarks opened subdued amid weak Asian markets, geopolitical tensions and elevated US bond yields. Sensex and Nifty declined marginally, while FMCG, metal and auto stocks gained. Strong Q1 GDP growth offered support, though crude prices and foreign outflows remained concerns

Mumbai: Equity benchmarks traded subdued in early trade on Tuesday tracking weak global cues as Asian markets remained under pressure amid rising geopolitical concerns and higher US bond yields. In early deals, Sensex hit an intraday low of 76,835, down 121 points or 0.15 per cent, while Nifty was at 24,027.80, lower by 52.60 points or 0.21 per cent from the previous close.

Sectorally, FMCG, metal, media and auto stocks were among top gainers, while realty, financial services, healthcare and pharma stocks came under pressure. Nifty FMCG index rose 0.76 per cent, followed by Nifty Metal at 0.63 per cent, Nifty Media at 0.61 per cent and Nifty Auto at 0.28 per cent.

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Meanwhile, Nifty IT gained 0.24 per cent. On the other hand, Nifty Realty fell 1.67 per cent, while Nifty MidSmall Financial Services, Nifty Healthcare and Nifty Pharma declined 1.40 per cent, 1.34 per cent, 1.32 per cent and 1.20 per cent, respectively.

Nifty Private Banks also traded lower. Market experts said India’s strong economic fundamentals could keep equities resilient despite near-term global headwinds. They added that the 7.8 per cent Q1 GDP growth print is reassuring and indicates that the economy is on track to achieve around 7 per cent growth in FY27, they said, noting that services and secondary sectors grew 10 per cent and 8.5 per cent, respectively.

However, elevated crude prices and high US bond yields remain key risks. The US 10-year Treasury yield at 4.77 per cent and 30-year yield at 5.24 per cent could encourage a flight of capital towards safer US assets. In addition, foreign institutional investors sold equities worth Rs 13,025 crore in the cash market over the last two sessions which added to pressure on domestic markets.

Moreover, experts expect Nifty to remain in the 23,000-25,000 range in the near term with domestic fundamentals providing support despite global volatility. Technically, Tuesday’s market direction will hinge on the Nifty’s ability to reclaim the 24,150-24,215 zone.

A failure to sustain above the 24,000-24,060 region could open the way towards 23,575, analysts said. Additionally, crude oil prices rose amid renewed US-Iran tensions, raising concerns over potential supply disruptions in the Middle East, while losses in US Treasuries and Asian bonds added to risk-off sentiment.