Mumbai, August 17: The Indian stock market opened in the red on Monday, the first trading day of the week, due to ongoing tensions between the United States and Iran, along with soaring crude oil prices.
At the start of trading, the Nifty 50 index opened down by 22.55 points, or 0.09%, at 24,343.45. Meanwhile, the BSE Sensex fell over 100 points, opening at 77,892.92, which is approximately 0.15% lower than the previous closing level.
In broader markets, the Nifty Midcap and Nifty Smallcap indices showed declines of 0.36% and 0.17%, respectively.
Sector-wise, the most significant weakness was observed in the Nifty Midsmall Financial Services Index, which slipped by 0.98%. Additionally, the Nifty PSU Bank and Nifty FMCG indices also recorded declines of up to 0.9%. Selling pressure was noted in real estate, cement, IT, energy, and private banking stocks.
However, some sectors did see buying activity. The Nifty Chemicals Index rose by 0.48%, while the Nifty Midsmall Healthcare Index gained nearly 0.45%.
In the Nifty50 index, shares of HCL Tech, Infosys, TMPV, TCS, Dr. Reddy’s Laboratories, and Wipro experienced the most significant declines. Conversely, shares of HDFC Life, Hindalco, Max Health, ONGC, Eicher Motors, and Titan traded higher.
Market experts believe that in the near term, the Nifty could trade within the range of 24,000 to 24,600 points. They suggest that the market may remain limited until a new positive trigger emerges.
Analysts note that crude oil prices are hovering around $89 per barrel, and there is no clear indication of a resolution to the U.S.-Iran conflict. High oil prices could limit market growth potential. Additionally, the weak performance of IT companies and major banking stocks continues to exert pressure on the indices.
Experts suggest that investors may currently look for opportunities outside the Nifty 50. Stock-specific activities in midcap and smallcap stocks remain robust, and the broader market performed well during the first quarter results.
They assert that if corporate earnings continue to improve, the Indian stock market could receive support despite external challenges like high crude oil prices.
Technical analysis indicates that the levels between 24,329 and 24,240 served as strong support for the Nifty last week, halting further declines at that point. However, market momentum remains weak.
Analysts believe that any attempts at a rally in the Nifty could face resistance between 24,540 and 24,666. If the index falls below 24,170 points, the decline could extend to 23,575 points.
Meanwhile, international crude oil prices remain elevated following last week’s surge. Amid concerns over U.S.-Iran tensions, investors are closely monitoring energy market activities and geopolitical developments.
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