Equity benchmarks opened largely flat on Thursday as investors weighed robust domestic growth indicators against lingering concerns over elevated crude oil prices.
Sensex opened 145.56 points or 0.19 per cent higher at 78,111.91, while Nifty slipped marginally by 4.35 points or 0.02 per cent to 24,431.60.
Sector-wise, Nifty Media index rose 0.61 per cent, followed by Nifty Auto which gained 0.39 per cent.
On the other hand, rate-sensitive and heavyweight sectors witnessed selling pressure. Nifty Realty declined 0.81 per cent, Nifty IT fell 0.69 per cent, while Nifty PSU Bank, Oil & Gas and Private Bank indices shed up to 0.61 per cent.
According to market experts, equities are likely to remain in a consolidation phase in the near term due to strong domestic macroeconomic fundamentals and sustained inflows from domestic investors.
High-frequency indicators such as GST collections, freight movement, automobile sales and credit growth continue to signal resilience in the economy and could support earnings growth going forward, they added.
However, elevated crude oil prices and uncertainty surrounding their future trajectory remain key risks for the market, the experts said.
Technical analysts noted that Wednesday’s rebound from the 20-day moving average and the formation of a hammer candlestick pattern have improved the near-term outlook.
“The recent price action has opened the possibility of a move towards the 24,540-24,666 zone initially, followed by 24,850-25,100. However, some consolidation may emerge near 24,490,” according to them.
Meanwhile, Brent crude slipped more than 1 per cent to $87.75 a barrel, while US West Texas Intermediate (WTI) fell 1.64 per cent to $81.90 per barrel, helping ease concerns over inflationary pressures and input costs.
(IANS Inputs)
