Domestic equity markets opened lower on Monday, tracking weak global cues and spike in crude oil prices amid escalating tensions in the Middle East kept investors cautious.
MUMBAI, JULY 20 (IANS) — Domestic equity markets opened lower on Monday, tracking weak global cues and spike in crude oil prices amid escalating tensions in the Middle East kept investors cautious.
Sensex fell over 500 points or 0.7 per cent to an intraday low of 77,591 in early trade, while Nifty started the session 144 points or 0.6 per cent lower at 24,190.05.
Sectorally, selling pressure was concentrated in financial stocks, with Nifty Private Bank index dropping more than 2 per cent, followed by the Nifty Realty index, which slipped over 1 per cent.
In contrast, the Nifty PSU Bank index gained around 1 per cent, while the Nifty Pharma, Nifty Healthcare, Nifty Metal and Nifty Oil & Gas indices traded in positive territory.
Among Nifty constituents, HDFC Bank, Axis Bank, Kotak Mahindra Bank, IndiGo and Shriram Finance emerged as the top losers in early trade.
According to market experts, despite the weak global backdrop, the domestic market's technical structure remains resilient, and any decline is likely to attract buying at lower levels. They said the derivatives setup continues to support a bullish undertone, with the Nifty expected to find immediate support around the 24,100 level, while 24,500 is likely to act as the key resistance.
Meanwhile, international oil prices surged after the Middle East conflict escalated further over the weekend, with the United States and Iran exchanging fresh attacks.
Brent crude rose nearly 3 per cent to approach the $90-a-barrel mark, while the US West Texas Intermediate (WTI) crude gained more than 3 per cent to $85.39 a barrel.
Tehran said the ceasefire between the two countries had effectively collapsed, heightening concerns over potential disruptions to oil supplies through one of the world's busiest shipping routes.
Asian markets traded mixed. Japan's Nikkei and South Korea's Kospi tumbled more than 4 per cent each, while Hong Kong's Hang Seng gained around 2 per cent. Indonesia's Jakarta Composite and China's Shanghai Composite also rose by up to 1 per cent.