Sensex, Nifty Open Lower as IT Stocks Drag Markets Amid Mixed Global Cues

The BSE Sensex opened at 73,484.38, down 122.37 points, or 0.17 per cent. The NSE Nifty 50 began the session at 22,708.80, declining 44.40 points, or 0.20 per cent.

IT stocks lead early losses

The Nifty IT index fell more than 1 per cent in early trade, making it one of the weakest sectoral performers. The Nifty Cement index declined 0.98 per cent, while the Nifty Oil and Gas index slipped 0.53 per cent.

Among the prominent Nifty 50 laggards were Infosys, Asian Paints, Tata Consultancy Services (TCS), JSW Steel and HCL Technologies, with losses reaching as much as 2.78 per cent.

In contrast, the Nifty PSU Bank index advanced 0.68 per cent. The Nifty Pharma index rose 0.44 per cent, while the Nifty Healthcare index gained 0.39 per cent.

Crude oil and bond yields weigh on sentiment

Market analysts identified elevated crude oil prices and rising US bond yields as key near-term challenges for domestic equities. Brent crude was trading above $114 per barrel, while the yield on the US 10-year Treasury bond hovered around 4.97 per cent.

These factors, alongside geopolitical uncertainty in West Asia, could keep foreign institutional investors (FIIs) cautious, analysts said.

However, they noted that improving corporate fundamentals, reflected in second-quarter earnings, and sustained domestic institutional inflows could provide support to the market.

In their technical assessment, analysts said the Nifty’s recovery attempts and movement towards the 22,690 level were broadly in line with expectations. They identified 22,630 as an important level to watch, with a sustained hold above it potentially opening the way towards 23,000 and 23,500, although volatility could increase around the 22,800–22,900 range.

A failure to hold above 22,630, they cautioned, could expose the index to lower levels around 22,250–22,000. These levels represent market scenarios rather than assured price movements.

FIIs sell, domestic investors extend buying streak

Foreign institutional investors remained net sellers on Monday, offloading equities worth ₹1,462 crore.

Domestic institutional investors (DIIs), meanwhile, continued their buying streak for a tenth consecutive session, recording net purchases of ₹2,609 crore.

The contrasting investment flows highlight the difference between continued foreign selling pressure and domestic institutional support for the market.

Global markets offer mixed signals

Overnight, US equity markets closed higher, with the S&P 500 rising 0.70 per cent and the Nasdaq gaining 0.82 per cent.

Asian markets, however, showed a mixed performance in early trading on Tuesday, leaving investors to assess global risk sentiment alongside domestic earnings, institutional flows and movements in crude oil prices.