Indian equity indices opened lower for the third consecutive session on Tuesday, tracking Asian peers, as expectations of likely delay in U.S. rate cuts added to investor concerns already weighed by geopolitical tensions in the Middle East.

The BSE Sensex was trading 534 points or 0.72% lower at 72,868. Nifty50 was trading at 22,119, down 153 points or 0.69% at around 9.17 am.

NTPC, Bajaj Finance, Infosys, Axis Bank, and TCS were the top Sensex laggards in early trade, while Nestle India, Titan, M&M, and Bharti Airtel opened higher.

Among individual stocks, Jio Financial Services rose 5% after the company entered into a new joint venture (JV) with U.S.-based BlackRock Inc to set up a wealth management and broking business in India.

On the sectoral front, Nifty IT declined by 0.9%, and Nifty Bank slipped by 0.8%. Conversely, Nifty Auto, Media, Metal, Consumer Goods, and Oil & Gas started the day on a positive note. In the broader markets, Nifty Smallcap100 surged by 0.5%, while Nifty Midcap100 opened flat.

Experts View
“Two issues- one economic and the other geopolitical- will continue to weigh on markets in the near-term. The economic factor is the rising US bond yields ( 10-year yield is above 4.6% ) which reduces the prospects of rate cuts by the Fed this year. High bond yields are negative for risky assets like equity and will accelerate FII selling in emerging markets like India,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

“The market is more concerned about the geopolitical issue. Israel’s military chief’s statement that “there will be a response to Iran’s attack on Israel” has increased the probability of escalation of tensions in the Middle East. We don’t know the timing and the nature of the Israeli response, which can be totally unexpected. This is likely to keep the markets weak in the near-term,” he said.

Deepak Jasani of HDFC Securities, said, “Short term trend of Nifty turned bearish as it has violated the crucial support of 20 days EMA, placed at 22370. Next support for the Nifty is seen in the range of 22110-22150. On the higher side 22417 and 22600 could offer resistance in the short term.”

Global Markets
Asian markets opened lower on Tuesday, following a lower close in the Wall Street overnight, after stronger-than-expected U.S. retail sales data added to fading expectations of an early Federal Reserve rate cut.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.76% to a nearly two-month low of 519.93, with Japan’s Nikkei down 1.9%.

U.S. stocks closed sharply lower on Monday as a jump in Treasury yields weighed on sentiment amid concerns about rising tensions between Iran and Israel.

FII/DII Tracker
Foreign institutional investors (FIIs) net sold shares worth Rs 3,268 crore, while domestic institutional investors (DIIs) purchased stocks worth Rs 4,762.93 crore on April 15, according to provisional data from the NSE.

Domestic institutional investors have been net buyers for five sessions in a row.

Oil Prices Rise
Oil prices rose on Tuesday amid heightened tensions in the Middle East after Israel’s military chief said his country would respond to Iran’s weekend missile and drone attack amid calls for restraint by allies.

Brent futures for June delivery rose 46 cents, or 0.5%, to $90.56 a barrel. U.S. crude futures for May delivery rose 43 cents, or 0.5%, to $85.84 a barrel.

Currency Watch
The Indian rupee fell 8 paise to 83.52 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.13% to 106.34 level.

(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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