Mumbai, Oct 14: Indian stock markets opened on a subdued note on Wednesday as investors weighed positive domestic developments against global economic uncertainties. While information technology stocks led early gains, weakness in consumer durables and healthcare shares kept overall market sentiment mixed.
The Nifty 50 opened at 22,715.75, declining 6.20 points or 0.03 per cent, while the BSE Sensex began trading at 73,049.76, rising 15.98 points or 0.02 per cent.
Among sectoral indices, the Nifty IT gained more than 1 per cent, emerging as the strongest performer in early trade. Nifty MidSmall IT & Telecom and FMCG indices advanced by up to 0.38 per cent, while media and private banking stocks also traded in positive territory.
In contrast, the Nifty Consumer Durables index fell 0.67 per cent, while healthcare-related indices declined by up to 0.6 per cent.
The cautious opening followed a sharp rally in the Nifty during Tuesday’s session, which market experts attributed largely to short-covering. Sentiment also improved after Finance Minister Nirmala Sitharaman said the government would carefully review stakeholder feedback on the long-term capital gains (LTCG) tax and securities transaction tax (STT). The remarks raised expectations of a possible review of the existing tax framework, although no changes have been confirmed.
The Reserve Bank of India’s recent measures to curb speculative activity in the currency market also supported the rupee, which appreciated nearly 1.5 per cent over the previous two trading sessions.
However, global headwinds continued to weigh on investor confidence. The US 10-year Treasury yield remained around 5.2 per cent, while Brent crude oil traded near $106 per barrel. Elevated bond yields can reduce the relative attractiveness of equities, while higher crude prices raise concerns over India’s import bill, inflation and corporate operating costs.
Businesses in fuel-intensive sectors, including aviation, logistics, paints and chemicals, could face additional cost pressures if crude prices remain elevated. Higher energy and transportation expenses may also affect profit margins and consumer spending.
Market participants are expected to track second-quarter earnings for indications of corporate performance and demand conditions. Financial services, telecommunications, metals and automobile stocks could attract investor interest amid expectations of relatively resilient earnings.
From a technical perspective, analysts have identified immediate support for the Nifty around 22,550. Resistance is seen in the 22,787–22,880 range, with a sustained move above this zone potentially strengthening bullish momentum. The index could subsequently attempt to move towards 23,200, although further gains may be constrained by selling pressure.
Asian markets rebounded after two consecutive sessions of losses, supported by expectations that the US Federal Reserve could adopt a less aggressive approach to interest rate hikes next year.
Meanwhile, crude oil prices advanced as traders assessed supply risks linked to clashes involving Yemen’s Iran-aligned Houthi movement and Saudi Arabia, along with the possibility of increased Russian diesel supplies to global markets.
Investors are likely to remain selective as they monitor global oil prices, US bond yields, currency movements and corporate earnings for clearer signals on the market’s next direction.