Domestic equity benchmarks traded lower in early deals on Friday as elevated crude prices and continued foreign investor selling kept sentiment subdued.
NEW DELHI — Domestic equity benchmarks traded lower in early deals on Friday as elevated crude prices and continued foreign investor selling kept sentiment subdued.
Sensex hit an intraday low of 77,747, down 332 points or 0.42 per cent in morning trade, while Nifty traded 84.39 points or 0.34 per cent lower at 24,311.45.
Sectorally, the Nifty Metal index was the biggest laggard and declined more than one per cent, followed by Nifty MidSmall IT & Telecom, Nifty Auto, Nifty IT and Nifty Cement indices. Meanwhile, Nifty Consumer Durables was among the few gainers, rising 0.29 per cent.
Market experts said the near-term trend is likely to remain range-bound, with the Nifty consolidating between 23,800 and 24,400 in the absence of a strong trigger for a breakout.
Brent crude had surged above $91 a barrel but subsequently cooled to below $87, providing some relief to Indian equities.
"Range bound nature of the market is likely to continue in the near-term. Nifty has been consolidating between 23,800 and 24,400 without any triggers for a breakout above the upper band or a breakdown below the lower band," an expert said.
"Select private sector banks offer value buying opportunities for the long term," the expert added.
In addition, FIIs were net sellers on Thursday, offloading equities worth INR 510 crore. However, domestic institutional investors continued to provide strong support, buying shares worth INR 4,353 crore.
According to analysts, FPI selling had tapered and foreign investors had recently turned buyers, although a clear trend in FII activity was yet to emerge.
Market activity continued to be concentrated in the mid- and small-cap segments, with experts expecting the trend to persist.
Additionally, Brent crude was trading flat at $87.08 a barrel, while US West Texas Intermediate crude was up 0.16 per cent to $81.38.