- Indian benchmarks opened lower amid rising crude oil prices.
- West Asia uncertainty, crude prices fueled global inflation concerns.
- Asian markets declined despite Wall Street’s previous positive close.
Indian benchmark indices lost their footing on Monday, tracking cautious global cues as rising crude oil prices and renewed uncertainty surrounding West Asia weighed on investor sentiment.
The BSE Sensex bled nearly 500 points and tested 73,400, while the NSE Nifty50 crashed more than 150 points to breach 23k, as of 9:15 AM.
The subdued opening comes after domestic equities extended their losing streak in the previous week, with investors closely monitoring geopolitical developments, energy prices and the outlook for global interest rates.
GIFT Nifty Signals Cautious Opening
The GIFT Nifty indicated a weak start for domestic equities, with futures trading at 23,118.50, down 69 points, pointing to a negative bias for the Nifty50.
At around 9:04 am, the Sensex was trading at 73,950.98, up 55.24 points or 0.07 per cent, while the Nifty stood at 23,107.45, down 33.05 points or 0.14 per cent.
Investors are likely to remain cautious as higher energy costs raise concerns over inflation and the possibility of further monetary tightening by the US Federal Reserve.
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Asian Markets Decline As Oil Prices Fuel Inflation Concerns
Asian equities traded lower on Monday as rising energy costs clouded the inflation outlook and heightened concerns about the global interest rate trajectory.
South Korea’s Kospi declined 2.07 per cent, while mainland China’s CSI 300 fell 1.24 per cent.
The weakness across Asian markets came despite a positive finish on Wall Street in the previous session.
Wall Street Ends Higher
US equity benchmarks closed in positive territory on Friday.
The Dow Jones Industrial Average advanced 0.93 per cent, while the S&P 500 gained 0.51 per cent. The Nasdaq Composite ended the session 0.48 per cent higher.
However, the gains on Wall Street failed to lift sentiment across Asian markets, where investors remained focused on the impact of elevated energy prices.
Crude Oil Crosses $106 As Strait Of Hormuz Uncertainty Persists
Crude oil prices climbed on Monday as uncertainty over the reopening of the Strait of Hormuz continued to cloud the global supply outlook.
Brent crude futures rose 1.55 per cent to $106 per barrel on the Intercontinental Exchange.
The rise followed Iran’s adherence to its seven-day plan to reopen the Strait of Hormuz, with no concrete response from Washington, according to the provided market update.
Higher crude prices remain a key concern for Indian equities, given the country’s dependence on imported oil and the potential implications for inflation, the current account deficit and corporate margins.
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Gold, Silver Futures Decline
Precious metals also witnessed selling pressure in early trade.
Gold futures declined 1.77 per cent, while silver futures fell 2.92 per cent, as investors assessed global market conditions and geopolitical developments.
Nifty Faces Resistance At 23,300
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said Indian equities had ended lower for the eighth consecutive week, with benchmark indices losing nearly 7 per cent over the past two months.
He noted that both the Nifty and Sensex had tested important support levels of 23,070 and 73,318, respectively, during the previous week.
According to Chouhan, although the market remains in a declining trend, the pace of losses has moderated, suggesting that selling pressure could be gradually easing.
He said this divergence in price movement could leave the market volatile near lower levels, with the possibility of a bottoming-out phase emerging.
Nifty Support And Resistance Levels
Chouhan identified 23,300 as an important level for the Nifty to reclaim. A sustained move above this mark could support a recovery towards 23,600.
On the downside, immediate support is placed at 22,800, followed by 22,600. The broader expected trading range for the Nifty is 22,600-23,600.
For the Sensex, resistance is seen at 74,500, with a sustained move above this level potentially opening the way towards 75,500.
Immediate support levels for the Sensex are placed at 73,200 and 72,500, while the broader expected range is 72,500-75,500.
Chouhan said investors could consider accumulating select stocks if the Nifty moves into the 22,800-22,600 range and the Sensex approaches 73,200-72,500**. He also suggested using any recovery towards 23,200-23,300 on the Nifty and 74,200-74,500 on the Sensex to reduce weaker long positions.
The ability of domestic benchmarks to hold their immediate support levels, alongside changes in foreign investor sentiment, will also remain important for the market’s near-term trajectory.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
