Indian equity markets opened in the red on Tuesday, tracking weakness in Asian markets. The broader market sentiment was dampened by selling pressure in IT, auto, financial services, and pharma sectors during early trade.
At 9:28 am, the BSE Sensex dropped 747.69 points, or 0.91%, to 81,428.76, while the NSE Nifty declined by 204.10 points, or 0.82%, to 24,797.05.
The Nifty Bank index was also down by 366.95 points, or 0.66%, at 55,205.05. The Nifty Midcap 100 was trading marginally lower at 57,062.60, while the Nifty Smallcap 100 inched up 36.60 points to 17,744.40.
Market experts noted that despite the weak opening, the Nifty has technically broken out of its recent consolidation phase between 24,500 and 25,000. Devarsh Vakil, Head of Prime Research at HDFC Securities, said, “Immediate resistance for the Nifty is seen at 25,207, based on the 76.4% Fibonacci retracement from the fall between 26,277 and 21,743. On the downside, 24,800 could act as near-term support.”
Analysts also observed that long-term investor commitment through SIPs (Systematic Investment Plans) is offering a cushion to the market amid volatility.
Among the Sensex constituents, NTPC, M&M, HCL Tech, Tech Mahindra, Infosys, and TCS were among the major laggards. IndusInd Bank emerged as the only gainer in the index.
Asian markets mirrored the weak sentiment, with indices in Bangkok, Seoul, China, Hong Kong, and Japan trading lower. Jakarta was the only major index in the region to show gains.
U.S. markets remained closed on Monday for Memorial Day. In Friday’s session, the Dow Jones Industrial Average fell 256.02 points to close at 41,603.07. The S&P 500 dropped 0.67% to 5,802.82, and the Nasdaq declined 1% to end at 18,737.21.
On the institutional front, Foreign Institutional Investors (FIIs) were net buyers of equities worth ₹135.98 crore on May 26, while Domestic Institutional Investors (DIIs) invested ₹1,745.72 crore.
-IANS
