New Delhi, Aug 11 (IANS) Domestic equity markets opened flat on Tuesday after surge in crude oil prices, while information technology and consumer durables stocks gained offset by weakness in banking and financial counters.
Sensex opened 32.67 points or 0.04 per cent lower at 78,509.77, while Nifty started the session declining 8.70 points or 0.04 per cent at 24,575.10.
Sector-wise, Nifty MidSmall IT & Telecom rose 0.73 per cent, Nifty Consumer Durables gained 0.66 per cent and Nifty IT advanced 0.63 per cent. Real estate, auto and pharmaceutical shares also traded in positive territory.
On the other hand, banking stocks were under pressure as Nifty Private Bank fell 0.64 per cent and Nifty PSU Bank declined 0.62 per cent.
Market experts said rising crude oil prices remained an irritant for equities, although improving domestic fundamentals, better-than-expected June-quarter earnings and stability in the rupee were providing support.
“Rising Brent crude price continues to be an irritant for the market even as other fundamentals exhibit strength,” they said, adding that foreign institutional investors turning buyers, encouraged by better-than-expected Q1 results and rupee stability, could keep the market resilient with a slight upward bias.
According to analysts, robust domestic consumption could sustain earnings growth through FY27, while large FCNR (B) inflows may support the rupee and, in turn, facilitate further foreign investor inflows.
Foreign investors are also rotating capital away from the so-called ‘chip trade’ in South Korea and Taiwan and compensating for their under-ownership of Indian equities, the experts said.
Interestingly, such flows are being directed towards relatively expensive sectors such as telecom, renewable energy, capital goods and pharmaceuticals rather than attractively valued banking majors, they said.
From a technical perspective, analysts see immediate support for the Nifty in the 24,400-24,450 zone and resistance at 24,750-24,800. Holding above the support zone could keep the index’s sideways-to-positive bias intact, with buying interest likely to emerge on dips. A decisive break above 24,750-24,800 could improve momentum and provide a fresh directional trigger.
Brent crude, the international benchmark, rose 0.41 per cent to $88.08 a barrel, while US West Texas Intermediate crude gained 0.47 per cent to $82.52 a barrel.
Asian markets were mixed in early trade. Japan’s Nikkei rose around 2 per cent and South Korea’s KOSPI gained more than 1 per cent, while Hong Kong’s Hang Seng declined 0.6 per cent.
US equities ended marginally lower on Monday, with the S&P 500 declining 0.06 per cent and the Nasdaq falling 0.32 per cent.
–IANS
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