Markets open lower as oil spike, FII outflows weigh on sentiment
Sensex falls over 200 points and Nifty slips in early trade amid rising crude prices, persistent foreign fund selling, and fragile global cues despite mixed Asian and resilient US markets
Mumbai, Apr 28 (PTI) Stock market benchmark indices Sensex and Nifty drifted lower in opening trade on Tuesday as surging oil prices and foreign fund outflows unnerved investors.
The 30-share BSE Sensex declined 208.84 points to 77,094.79 in opening trade. The 50-share NSE Nifty dipped 42.8 points to 24,049.90.
From the 30-Sensex firms, State Bank of India, Eternal, UltraTech Cement, InterGlobe Aviation, Trent and Axis Bank were among the biggest laggards.
Tata Steel, Bajaj Finance, Kotak Mahindra Bank and Bharat Electronics were among the gainers.
Brent crude, the global oil benchmark, traded 0.99 per cent higher at USD 109.3 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,151.48 crore on Monday, according to exchange data.
"Elevated crude oil prices continue to be a key concern, with Brent trading in the USD 106–110 per barrel range, adding to inflationary pressures and weighing on sentiment. On the domestic front, foreign investor flows remain under pressure, reflecting global risk aversion, while domestic institutional investors continue to provide some support," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Overall, sentiment remains fragile and largely driven by external factors, he added.
In Asian markets, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index quoted lower, while South Korea's benchmark Kospi traded higher.
US markets ended flat on Monday.
"Global markets present a mixed but cautiously constructive picture. The S&P 500 and Nasdaq Composite have scaled fresh record highs, reflecting underlying resilience in US equities. However, the upside momentum remains constrained by unresolved geopolitical tensions, particularly around the Strait of Hormuz, where fresh developments continue to influence crude oil prices and global risk sentiment," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
On Monday, the Sensex jumped 639.42 points or 0.83 per cent to settle at 77,303.63. The Nifty climbed 194.75 points or 0.81 per cent to close at 24,092.70. PTI