Mumbai, Sep 25: Indian equity markets opened with modest gains on Friday but remained under pressure as elevated crude oil prices, higher US bond yields and weakness in IT stocks kept investors cautious.
The 30-share BSE Sensex initially gained 86 points to 73,672.98, while the NSE Nifty 50 rose 18.80 points to 23,080.45 in early trade. The gains, however, soon faded, with the Sensex slipping 12.95 points to 73,568.22 and the Nifty declining 16.75 points to 23,049.40.
Among Sensex constituents, Larsen & Toubro, Axis Bank, Mahindra & Mahindra, Power Grid, State Bank of India, HCL Technologies and Bajaj Finance were among the notable gainers. Infosys, Tata Consultancy Services, Tech Mahindra and NTPC were among the stocks trading lower.
Crude oil continued to remain a key market concern despite a slight easing in prices. Brent crude was trading 0.99 per cent lower at around $105.50 a barrel, but remained at an elevated level, keeping concerns over inflation, corporate costs and India's import bill in focus.
Market sentiment was also affected by elevated US Treasury yields. The US 10-year yield was hovering around 5.2 per cent, increasing the pressure on global equities and potentially reducing the attractiveness of emerging-market assets.
According to market analysts, a combination of rising bond yields, elevated crude prices and concerns surrounding proposed changes to insurance commission structures contributed to the sharp sell-off in Indian equities during the previous session.
Asian markets presented a mixed picture on Friday. Japan's Nikkei 225 traded in positive territory, while Shanghai's SSE Composite and Hong Kong's Hang Seng remained lower. US markets also closed mostly lower on Thursday.
Foreign Institutional Investors (FIIs) remained sellers in Indian equities, offloading shares worth Rs 5,027.36 crore on Thursday, according to exchange data. Continued foreign selling, coupled with global macroeconomic pressures, is likely to remain an important factor for domestic market sentiment.
The previous session saw a sharp decline in Indian benchmarks. The Sensex fell 1,247.71 points, or 1.67 per cent, to close at 73,580.54, while the Nifty dropped 383.70 points, or 1.64 per cent, to settle at 23,063.10.
With crude prices still elevated and global bond yields remaining high, investors are likely to closely track oil prices, foreign fund flows, global markets and sector-specific developments for further market direction.
