Mumbai, Aug 7: Indian benchmark equity indices opened lower on Friday as rising global crude oil prices and weak global market cues dampened investor sentiment ahead of the release of key U.S. economic data.
The BSE Sensex began the session at 78,516.08, down 438.68 points (0.56%), while the NSE Nifty slipped 97.10 points (0.39%) to open at 24,538.90.
Selling pressure was evident in financial, banking, and cement stocks during early trade. Sectoral indices including Nifty Financial Services Ex-Bank, Nifty Cement, Nifty PSU Bank, and Nifty Private Bank declined by up to one per cent.
On the other hand, information technology, automobile, real estate, FMCG, and telecom stocks bucked the broader market trend. The Nifty IT, Nifty Mid & Small IT & Telecom, Nifty Auto, Nifty Realty, and Nifty FMCG indices gained as much as 1.5 per cent, providing support to the market.
Market analysts said the broader market remains in a consolidation phase and is gradually moving higher, laying the foundation for a potential upward breakout. They noted that first-quarter (Q1) corporate earnings have reinforced confidence in several sectors despite ongoing global uncertainties.
According to experts, companies in the financial services, automobile, pharmaceutical, and telecom sectors have largely reported double-digit growth in both revenue and profits, helping their stocks remain resilient. In contrast, the IT sector continues to face challenges due to slower business growth and concerns over the long-term impact of artificial intelligence on the industry.
Performance in commodity-linked sectors, including metals and oil, has remained mixed.
Looking ahead, analysts expect financial services, automobiles, telecom, and capital goods to continue driving earnings growth. However, they cautioned that while the broader market has delivered strong performance, elevated valuations could limit the pace of further gains.
Meanwhile, international crude oil prices extended their rally amid persistent geopolitical tensions. Brent crude, the global benchmark, rose more than one per cent to $83.83 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed over one per cent to $78.42 per barrel, raising concerns over inflationary pressures and their potential impact on financial markets.