Domestic equity benchmarks opened marginally lower on Monday weighed by concerns over liquidity absorption from a busy initial public offering calendar and persistent tensions in the Middle East that have pushed crude oil prices higher.
Nifty 50 started the trading session declining 14.55 points or 0.06 per cent at 23,883.15, while Sensex opened 69.38 points or 0.09 per cent lower at 76,446.05.
In early trade, Nifty Media index fell 1.26 per cent and Nifty IT index declined 1.15 per cent, leading sectoral losses.
Meanwhile, Nifty Auto, Nifty Chemicals, Nifty Private Bank, Nifty FMCG and Nifty Cement indices were also in the red zone.
In contrast, Nifty Oil & Gas index rose 0.06 per cent, while Nifty Metal, Nifty PSU Bank, Nifty Realty gained up to 0.38 per cent.
According to analysts, the equity market had been drifting lower for four weeks despite positive economic and corporate earnings news with elevated crude prices and the IPO boom emerging as key headwinds.
“There are eleven mainboard IPOs hitting the market this week. The mega IPOs are also expected this month and the offerings could absorb significant liquidity and divert investor focus from the secondary market,” according to them.
Technically, the market experts said the Nifty’s downside marker at 23,860 remained intact, while the index faced resistance near 23,960. The 23,800 level was seen as a key support with a break below it potentially opening the way towards the low 23,000s with an initial objective of 23,570.
The 24,150-24,215 region remains a hurdle to be crossed before strength is confirmed, analysts said.
In addition, crude oil prices traded higher on Monday as rising tensions between the United States and Iran in the Strait of Hormuz raised concerns about potential supply disruptions.
(IANS Inputs)
