Nifty, Sensex Open Lower as Crude and Global Cues Weigh
Shares in India opened lower on Monday as global uncertainties kept investors cautious at the start of the trading week. The decline extended the losing run for major domestic indices to five consecutive sessions.
The 30-share Sensex opened at 72,990.04, down 133.79 points or 0.18 per cent from Friday's close of 73,123.83. The 50-share Nifty opened at 22,524.40, lower by 75.59 points or 0.33 per cent from its previous close of 22,600.00.
The selloff deepened during trading. The Sensex touched a day's low of 72,514.57, falling 609.25 points or 0.83 per cent. The Nifty 50 hit 22,387.35, a drop of 212.65 points or 0.94 per cent.
The broader market was weaker as well. The Nifty Midcap 100 index shed 0.81 per cent, and the Nifty Smallcap index declined 0.91 per cent.
Most sectoral indices on the NSE closed in negative territory. The Nifty PSU Bank, FMCG, Auto, Financial Services and IT indices were among the worst performers, with declines of over 1 per cent at their lows. Private banks were a bright spot, as the Nifty Private Bank index rose about 0.49 per cent. Pharma and healthcare shares also held up better than the wider market.
Investors will now track the US Federal Reserve's policy meeting on October 27-28 and September quarter corporate results. Most forecasts suggest the Fed will hold rates steady, but its future policy signals could move US Treasury yields, the dollar and capital flows into emerging economies.
According to market experts, Brent crude has eased slightly in recent days but remains at high levels. This restricts the likelihood of a strong and lasting equity rally. They noted that valuations in several stocks look more appealing after the recent fall, though investors must stay alert to the broader economic risks posed by expensive crude oil.
Analysts said the steep drop in midcap and smallcap stocks last week was largely due to the unwinding of margin-funded trades. They added that selected high-growth sectors may offer new investment prospects following this correction.
Experts also believe that the easing of the artificial intelligence theme globally may prove relatively positive for India. Foreign portfolio investors have withdrawn more funds from South Korea and Taiwan than from India in recent months, reflecting the comparatively stronger footing of Indian equities.
On October 23, foreign institutional investors were net buyers of shares worth 887 crore rupees. Domestic institutional investors extended their buying for a fourth straight session with equity purchases of 3,236 crore rupees.
In the commodities market, Brent crude fell more than 2 per cent to trade near 114 dollars per barrel. US benchmark West Texas Intermediate crude also dropped over 2 per cent, to 100.70 dollars per barrel.
Asian markets were also cautious. Crude prices have moved below six-month highs, yet investors remain focused on key central bank decisions and corporate earnings due this week. Market watchers believe these factors will be decisive in determining the direction of the AI-driven market rally.