Sensex, Nifty Open Lower Amid Crude Spike, Geopolitical Tensions

(MENAFN- IANS) Mumbai, May 12 (IANS) Indian equity benchmarks traded sharply lower on Tuesday for the second consecutive day in morning trade, with both indices declining around 0.5 per cent amid geopolitical tensions.

Sensex declined as much as 0.62 per cent or 474 points to trade at an intraday low of 75,541 in early trade, while Nifty was seen trading at 23,689, down 0.53 per cent or 126 points from the previous close.

Sector-wise, IT, chemicals, realty, cement and financial indices were among the top losers, declining by over 2 per cent.

Meanwhile, Infosys, Tech Mahindra, TCS, HCL Tech, Wipro, SBI Life, HDFC Life, Maruti Suzuki, ICICI Bank, Asian Paints, Dr Reddy’s Laboratories and Bajaj Finance were among the top laggards.

In contrast, Nifty Metal, Nifty Oil & Gas and Nifty PSU Bank were the only sectors trading in the green.

Earlier in the day, the Sensex opened at 75,688.39, down 0.43 per cent or 326 points, while the 50-scrip basket began the session at 23,722.60, lower by 0.4 per cent or 93 points.

According to a market expert, sectors that are unlikely to be impacted by Prime Minister Narendra Modi’s austerity appeal are expected to remain resilient.

“Pharmaceuticals is one segment that is unlikely to be impacted at all since the sector has inelastic demand,” the expert said, adding that the sector also benefits from rupee depreciation.

“FMCG, too, is expected to remain largely unaffected. One sector to watch out for is capital goods. There are clear signs of recovery in capital formation, as reflected in the 67 per cent surge in private capex in September last year,” the analyst said.

“This positive development has been overshadowed by a flood of negative news. If the private capex cycle sustains, capital goods stocks are likely to perform well. Demand in sectors such as automobiles and renewable energy continues to remain buoyant, supporting capex growth in these segments,” the expert added.

In commodities, international oil benchmark Brent crude rose 1.09 per cent to $105.35 per barrel, while US West Texas Intermediate (WTI) crude gained 1.23 per cent to $99.28 per barrel.

Among global equities, Asian markets showed a mixed trend. Japan’s Nikkei traded 0.48 per cent higher, Hong Kong’s Hang Seng gained 0.31 per cent, while South Korea’s KOSPI declined more than 2 per cent.

Overnight in the US, the S&P 500 closed 0.19 per cent higher, while the Nasdaq settled 0.10 per cent up.

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