Mumbai (Maharashtra) [India], October 1 (ANI): Indian equity markets opened lower on Thursday, as elevated US Treasury yields and weak global cues weighed on investor sentiment at the start of October.
The BSE Sensex opened at 72,192.89, down 287.40 points or 0.40 per cent, while the NSE Nifty 50 opened at 22,543.70, lower by 76.75 points or 0.34 per cent.
At the time of filing this report, the Sensex had pared some losses to trade at 72,357.16, down 123.13 points or 0.17 per cent, while the Nifty stood at 22,555.75, down 64.70 points or 0.29 per cent.
Ahead of the opening, Devarsh Vakil of HSL Prime Research said, “Indian equities are poised for a lower open, on the back of weak global cues.”
Vakil flagged key levels for the Nifty after the index recorded its third consecutive daily decline in the previous session.
“Immediate resistances lie at 22,810 and the 23,000–23,100 band; a decisive break above this zone is required to signal a meaningful recovery. Conversely, a sustained move below the recent swing low of 22,569 could extend the decline toward 22,200,” he said.
Hemang Gor, Senior Research Analyst – Derivatives and Technical Research, Axis Direct, also pointed to a subdued near-term outlook.
“The bias is neutral; the undertone stays subdued while the Nifty trades below 22,800,” Gor said. He placed immediate support at 22,500, adding that a break below this level could push the index towards 22,400.
The weaker domestic opening followed a mixed close on Wall Street. The S&P 500 fell 0.25 per cent and the Dow Jones Industrial Average declined 0.86 per cent, while the Nasdaq gained 0.24 per cent. The Dow lost more than 4 per cent during September, according to HSL Prime Research.
US second-quarter GDP growth was revised up to 2.2 per cent annualised from 1.5 per cent. Meanwhile, August personal consumption expenditures (PCE) inflation eased to 3.4 per cent year-on-year from 3.7 per cent in July, while core PCE inflation moderated to 3 per cent.
Despite softer inflation, the US 10-year Treasury yield climbed to about 5.29 per cent, while the 30-year yield reached a 24-year high, according to HSL Prime Research.
“Elevated yields are weighing on risk assets and supporting the dollar,” Vakil said.
He added that upcoming US economic releases and Federal Reserve commentary would provide further direction.
“Investors will watch today’s jobless claims and ISM manufacturing data, along with remarks from Fed officials Barkin, Collins and Schmid, for further cues,” Vakil said.
Gor said a sustained easing in crude prices or Treasury yields could help the Nifty reclaim 22,800 and move towards 23,000.
Among individual stocks, Kotak Bank rose 2.49 per cent, while Infosys gained 2.29 per cent, TCS 1.59 per cent, HCLTech 1.35 per cent and Tech Mahindra 1.11 per cent.
Bajaj Auto declined 3.44 per cent, Max Healthcare fell 2.08 per cent and Mahindra & Mahindra slipped 1.87 per cent.
Sectorally, Nifty IT gained 1.62 per cent and the private bank index rose 0.74 per cent. Auto, media and realty indices declined 1.41 per cent, 0.94 per cent and 0.65 per cent, respectively.
Brent crude traded at USD 97.16 a barrel, down 0.89 per cent. Asian markets were mixed, with Japan’s Nikkei gaining 1.8 per cent and South Korea’s Kospi trading largely flat.
Market analyst Vipin Dixena said investors should assess the Nifty’s valuation correction alongside its technical weakness.
“I would remain selective rather than assume that cheaper valuations automatically mean the bottom is in,” he said. (ANI)
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