Mumbai, Sep 7: Indian stock markets started the week on a cautious note on Monday, with the Sensex and Nifty opening slightly lower as investors remained wary of rising crude oil prices, tensions in the Middle East and a packed IPO calendar.
The Nifty 50 opened at 23,883.15, down 14.55 points or 0.06 per cent, while the Sensex slipped 69.38 points or 0.09 per cent to 76,446.05.
Selling was more visible in IT and media stocks in early trade. The Nifty Media index fell 1.26 per cent, while the IT index declined 1.15 per cent. Auto, Chemicals, Private Bank, FMCG and Cement stocks also traded under pressure.
Some pockets of the market, however, managed to stay positive. Oil & Gas, Metal, PSU Bank and Realty stocks recorded modest gains.
A major concern for investors this week is the strong IPO pipeline. With several mainboard issues opening for subscription, a significant amount of investor money could move towards new offerings, potentially reducing liquidity available for the broader secondary market.
Global developments are adding to the cautious mood. Renewed tensions involving the US and Iran have pushed crude prices higher, raising concerns over energy costs and their possible impact on India’s economy and corporate earnings.
The market is also coming into the new week after four consecutive weekly declines, making investors more selective in their approach. Analysts are watching the 23,800 level on the Nifty as an important support, while 23,960 could act as an immediate hurdle.
For the week ahead, movements in crude oil, foreign fund flows, IPO activity, global interest-rate expectations and developments in the Middle East are likely to remain key drivers of market sentiment.
With several competing factors at play, investors could see continued volatility and stock-specific movements during the week.