Weak Global Signals and Rising Crude Oil Prices Slow Down Indian Stock Market
Indian stock market opens sluggishly as crude oil prices rise and global signals weaken, leading to a slight decline in major indices.
Mumbai, September 29 (Daily Kiran) : The Indian stock market had a sluggish start on Tuesday, September 29, as rising crude oil prices and weak global signals contributed to a decline in benchmark indices. The Sensex opened down by 138.04 points, or 0.19%, at 72,633.68. Similarly, the Nifty fell by 47.80 points, or 0.21%, starting at 22,732.45.
Sector-wise, the Nifty Auto, Nifty Media, Nifty FMCG, and Nifty Cement indices saw declines of up to 0.64% during morning trading. Consumer durables, metal, and chemical stocks also traded lower. In contrast, pharmaceutical and healthcare stocks experienced gains, with the Nifty Pharma and Nifty 500 Healthcare indices rising by nearly 1%.
Experts attribute the challenging global macro environment for equities to high crude oil prices and rising U.S. bond yields, which have increased concerns among investors. “With Brent crude remaining above $106 and the U.S. 10-year bond yield at 5.23%, the global macro situation continues to pose challenges for equity markets,” they noted.
However, analysts suggest that the attractive valuations of large-cap growth stocks may present buying opportunities for long-term investors. They indicated that the short-term outlook remains bearish, especially following a drop below the 23,000 level, with derivatives positions signaling caution.
Immediate support for the Nifty is observed in the 22,650-22,700 range, while resistance is seen at 22,950-23,000.
Additionally, early exchange data revealed that foreign institutional investors (FIIs) remained net sellers for the third consecutive session, offloading shares worth over ₹5,353 crore on Monday. In contrast, domestic institutional investors (DIIs) continued to provide support, purchasing shares worth ₹5,189 crore.
Internationally, the benchmark Brent crude was trading over 1% higher at $106.87 per barrel, while U.S. West Texas Intermediate (WTI) crude also rose by more than 1% to $93.99.
Asian stock markets faced pressure as well, with Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s KOSPI falling by up to 1% during early trading. The U.S. stock market closed lower on Monday night, with the S&P 500 down by 0.77% and the Nasdaq declining by 0.92%.
