Sensex, Nifty open lower as Iran war uncertainty keeps crude prices elevated

Mumbai, Aug 17 (SocialNews.XYZ) Domestic equity markets opened marginally lower on Monday as the lack of progress towards ending the US-Iran war kept crude oil prices elevated.

Nifty 50 opened at 24,343.45, down 22.55 points or 0.09 per cent, while Sensex declined more than 100 points or 0.15 per cent to 77,892.92.

Among sectoral indices, Nifty MidSmall Financial Services was the biggest laggard, declining 0.98 per cent, followed by Nifty PSU Bank and Nifty FMCG which slumped up to 0.9 per cent in early trade. Other sectors -- realty, cement, IT, energy and private Bank -- also traded lower.

On the other hand, Nifty Chemicals rose 0.48 per cent and Nifty MidSmall Healthcare gained 0.45 per cent.

According to market experts, Nifty is likely to remain range-bound between 24,000 and 24,600 in the near term until fresh triggers emerge.

Crude trading at $89, without any prospects for an immediate resolution to the crisis is likely to cap any uptrend that may emerge, they said adding that the index was also being weighed down by weak performance of IT majors and large banking stocks.

Analysts noted that investors could look beyond the Nifty 50 for short-term opportunities with stock-specific activity likely to remain strong in the midcap and smallcap segments.

The broader market's outperformance during the first-quarter earnings season is expected to continue, while a recovery in corporate earnings could provide resilience to equities despite external headwinds such as elevated crude prices.

Technically, analysts said the 24,329-24,240 zone had repeatedly arrested declines last week, but momentum remained weak.

In addition, near-term upside attempts could face resistance around 24,540-24,666, while a break below 24,170 could expose the index to 23,575.

Crude oil prices remained largely stable on Monday, holding last week's gains amid continued concerns over US-Iran tensions.

Source: IANS