Mumbai, Sep 30: Indian equity benchmarks began Wednesday’s trading session on a cautious note, with the Sensex and Nifty opening marginally lower as investors remained wary amid continued foreign institutional selling, elevated US bond yields and mixed global market signals.
The Sensex opened at 72,441.15, declining 87.92 points, or 0.12 per cent. The Nifty 50 opened at around 22,665, down nearly 50 points, or 0.23 per cent.
The subdued opening came amid continued pressure on domestic equities following recent market weakness. Persistent foreign investor outflows have remained a key concern for investors, while higher US Treasury yields have also weighed on sentiment towards emerging-market assets.
FII selling remains a key market factor
Foreign institutional investors extended their selling activity for the fourth consecutive trading session, keeping pressure on domestic equities. Continued overseas outflows have added to market volatility at a time when investors are already monitoring global interest-rate expectations and currency movements.
Domestic institutional investors have provided some support through buying activity, helping limit the impact of sustained foreign selling.
Crude oil and bond yields in focus
Brent crude remained around the $103-a-barrel level, keeping concerns over India’s import bill, inflation and the rupee in focus.
At the same time, elevated US Treasury yields continued to influence investor sentiment. Higher global bond yields can reduce the relative appeal of emerging-market equities and encourage investors to remain cautious.
Mixed global cues
Global markets offered mixed signals for domestic investors. US equities ended mildly lower in the previous session, while Asian markets showed a mixed-to-positive trend in early trade.
The combination of global market movements, crude oil prices, bond yields and foreign fund flows is expected to remain important for Indian equities during Wednesday’s session.
Sectoral performance
Sectoral trends remained mixed at the opening. Nifty MidSmall IT and Telecom, PSU Bank, and Oil & Gas stocks gained up to around 1 per cent, while metal and healthcare stocks remained under pressure.
Investors are likely to track institutional flows, crude oil movements, the rupee and global bond yields closely as trading progresses.
