Indian equity benchmarks Sensex and Nifty opened marginally lower on Monday as a packed IPO calendar, elevated crude oil prices and persistent tensions in the Middle East kept investors cautious.
The Sensex opened 69.38 points, or 0.09 per cent, lower at 76,446.05, while the Nifty 50 declined 14.55 points, or 0.06 per cent, to 23,883.15 at the opening bell.
IT, Media stocks lead decline
Selling pressure was visible across several sectors in early trade. The Nifty Media index fell 1.26 per cent, while the Nifty IT index declined 1.15 per cent, emerging as the biggest sectoral laggards.
Nifty Auto, Chemicals, Private Bank, FMCG and Cement indices were also trading in the red. In contrast, the Nifty Oil & Gas index gained 0.06 per cent, while Nifty Metal, PSU Bank and Realty indices rose by up to 0.38 per cent, providing some support to the broader market.
IPO rush puts liquidity in focus
According to analysts, the equity market has been drifting lower for four weeks despite positive economic and corporate earnings news, with elevated crude oil prices and the IPO boom emerging as key headwinds.
Eleven mainboard IPOs are scheduled to hit the market this week, raising concerns that the fresh issues could absorb significant liquidity and divert investor attention and funds away from the secondary market. Several mega IPOs are also expected later this month, adding to concerns over liquidity absorption.
Crude oil adds to market concerns
Crude oil prices traded higher on Monday as rising tensions between the United States and Iran around the Strait of Hormuz raised concerns about potential supply disruptions.
Higher crude prices remain a concern for India due to its dependence on oil imports and their potential impact on inflation and the rupee.
Nifty support at 23,800
On the technical front, market experts said the Nifty’s downside marker at 23,860 remained intact, while immediate resistance was seen near 23,960.
The 23,800 level remains a key support. A sustained break below this level could increase downside pressure and open the way towards the low 23,000s, with 23,570 emerging as the initial objective.
On the upside, the 24,150-24,215 zone remains a major hurdle. A decisive move above this region would be needed before stronger momentum can be confirmed.