Indian Equity Markets Open Flat Amid Gains in Crude Oil Prices

The Indian equity markets opened flat on Tuesday despite gains in crude oil prices. The Sensex started the session at 78,509.77, down 32.67 points or 0.04 per cent from the previous day's close. The Nifty also began trading lower by 8.70 points or 0.04 per cent at 24,575.10.

On the positive side, the Nifty MidSmall IT & Telecom sector rose 0.73 per cent, with consumer durables and information technology sectors gaining 0.66 per cent and 0.63 per cent respectively. Real estate, auto, and pharmaceutical shares also traded in the green zone.

However, banking stocks were under pressure as Nifty Private Bank fell 0.64 per cent and Nifty PSU Bank declined 0.62 per cent. Market experts attributed the weakness to rising crude oil prices, but noted that improving domestic fundamentals and better-than-expected June-quarter earnings were providing support.

Analysts pointed out that robust domestic consumption could sustain earnings growth through FY27, while large FCNR (B) inflows may support the rupee and facilitate further foreign investor inflows. Foreign investors are also rotating capital away from 'chip trade' in South Korea and Taiwan and compensating for their under-ownership of Indian equities.

Brent crude, the international benchmark, rose 0.41 per cent to $88.08 a barrel, while US West Texas Intermediate crude gained 0.47 per cent to $82.52 a barrel. Asian markets were mixed in early trade, with Japan's Nikkei rising around 2 per cent and South Korea's KOSPI gaining more than 1 per cent.