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Indian benchmark indices gave up their early gains and slipped into the red shortly after opening on Tuesday, as investors turned cautious despite support from lower crude oil prices and positive global market cues.
The Nifty 50 had opened at 24,032.05, up 85.80 points or 0.36 per cent, while the BSE Sensex started the day at 77,005.51, gaining 277.14 points or 0.36 per cent. However, both indices later turned lower as investors booked profits and remained watchful of domestic and global developments. Market sentiment at the opening was supported by stabilising crude oil prices and a strong rally in US markets overnight. Ajay Bagga, banking and market expert, told ANI that lower international crude oil prices could provide relief to the Indian economy if the benefits are passed on to consumers. "Lower international crude oil prices will provide relief to the Indian economy, provided the end consumer prices are brought down rapidly. The marginal price of the Indian crude basket reached the February levels in end June, making the case for a price cut in petrol, diesel and aviation fuel strong. The poor monsoon remains a drag, with 43% deficient rainfall so far, pointing to a subdued rural demand in the months to come," he said. Commenting on global developments, Bagga said, "While a temporary U.S.-Iran ceasefire in the Persian Gulf helped clear a path for commercial shipping through the Strait of Hormuz, underlying anxieties over the stability of the truce kept a floor under energy prices. Brent crude edged back up to settle near USD 74 per barrel, leaving macro sentiment cautiously optimistic ahead of upcoming economic data and central bank commentary later this week." Sectoral indices showed a mixed trend in early trade. Nifty Realty gained 0.32 per cent, Nifty Oil & Gas rose 0.13 per cent and Nifty Bank was up 0.04 per cent. However, Nifty Auto declined 0.73 per cent, Nifty IT slipped 0.68 per cent and Nifty Metal fell 0.66 per cent. Brent crude was at USD 72.51 per barrel at the time of filing this report. Among Nifty 50 stocks, Maruti Suzuki, Nestle India, Axis Bank, Sun Pharma and Adani Ports were among the top gainers in the opening trade. Eicher Motors, Tata Consumer Products, Infosys, Hindalco, HDFC Life and SBI Life were among the top losers. Other Asian markets also showed mix trend on Tuesday opening session, Japan's Nikkei 225 gained 1.41 per cent, Taiwan's weighted index rose 3.09 per cent and South Korea's Kospi advanced 1.48 per cent. However, Singapore's Straits Times declined 0.53 per cent and Hong Kong's Hang Seng index fell 1.25 per cent. On Monday, Wall Street ended higher, with the S&P 500 rising 1.2 per cent and the Nasdaq gaining 2.1 per cent, aided by a USD 518 billion semiconductor investment announcement from South Korea that boosted optimism around artificial intelligence-related growth. (ANI)
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