Indian stock markets turned flat after falling in early trade on Tuesday, as a rise in crude oil prices dampened investor sentiment. The 30-share BSE Sensex declined 264.82 points to 76,224.14 in opening trade, while the 50-share NSE Nifty dipped 27.6 points to 24,004.10. However, both indices recovered later in the session, trading near the flat line.
Crude Oil Prices Weigh on Markets
The uptick in global crude oil prices added pressure on domestic equities, as higher oil prices can increase import costs and impact fiscal deficit. Benchmark Brent crude rose above $82 per barrel, driven by supply concerns and geopolitical tensions.
Market Sentiment and Sectoral Performance
Market breadth remained weak, with more stocks declining than advancing on the BSE. Sectoral indices were mixed, with IT and banking stocks underperforming, while auto and metal shares showed resilience. Analysts expect volatility to persist amid global cues and domestic inflation data.
The broader market also witnessed selling pressure, with the BSE midcap and smallcap indices falling up to 0.5 percent. Foreign institutional investors (FIIs) remained net sellers, while domestic institutional investors (DIIs) provided some support.
Outlook
Market participants are closely watching the trajectory of crude oil prices, the monsoon session of Parliament, and upcoming corporate earnings for further direction. The near-term trend is likely to remain cautious, with support for Nifty at 23,800 and resistance near 24,200.
