Domestic equity benchmark indices opened on a muted note on Tuesday, tracking weak cues from Asian markets after a sharp selloff in global semiconductor stocks.
MUMBAI — Domestic equity benchmark indices opened on a muted note on Tuesday, tracking weak cues from Asian markets after a sharp selloff in global semiconductor stocks.
Sensex opened at 76,831.75, down 4 points or 0.01 per cent, while Nifty started the session at 23,971.25, lower by 24.70 points or 0.10 per cent.
Sectorally, IT stocks led the gains in early trade, with Nifty IT surging 2 per cent. Nifty MidSmall IT & Telecom advanced 1 per cent, while realty, healthcare and pharma stocks also traded in positive territory.
On the other hand, energy stocks were losers, with Nifty Oil & Gas falling 0.30 per cent, followed by Nifty PSU Bank, which slipped 0.26 per cent.
Market sentiment remained cautious after a broad-based decline in global chip stocks, triggered by the blockbuster debut of China's ChangXin Memory Technologies (CXMT), which raised concerns over intensifying competition in the memory chip industry.
Analysts said Indian equities are likely to remain under pressure in early trade due to weak global cues despite the recent recovery in benchmark indices.
They noted that the Nifty snapped a five-session losing streak on Monday, rising 228 points to close at 23,995. From Friday's low of 23,606, the index has rebounded more than 400 points.
According to market experts, the 23,606 level remains a crucial support as it coincides with the rising trendline connecting the April swing low of 22,182 and the June swing low of 23,070. A decisive close above 24,200 would be required to strengthen bullish momentum further, while immediate support is seen around 23,800.
Meanwhile, Asian markets traded lower. Japan's Nikkei fell more than 4 per cent, South Korea's KOSPI slumped nearly 10 per cent, while Hong Kong's Hang Seng traded flat.
Overnight, Wall Street ended on a mixed note. The Dow Jones gained 0.5 per cent, the S&P 500 was largely flat, and the Nasdaq Composite slipped 0.2 per cent as a sharp selloff in semiconductor stocks weighed on technology shares.
Additionally, international oil benchmark Brent crude declined 1.62 per cent to $86.50 per barrel, while US West Texas Intermediate (WTI) decreased 1.68 per cent to $80.64.