Indian equity markets opened on a muted note on Wednesday, with profit booking in banking stocks weighing on benchmark indices during early trade, while buying in Reliance Industries provided partial support.
Despite positive cues from Asian markets, domestic benchmarks opened flat and slipped into negative territory within minutes of the opening bell. Early trading reflected selling pressure in banking stocks, which placed downward pressure on the broader market.
Selling in major banking stocks including ICICI Bank and HDFC Bank weighed on the indices. At the same time, gains in index heavyweight Reliance Industries provided some support to the market. Investors are currently monitoring global cues and crude oil prices.
Sensex and Nifty in early trade
The 30-share BSE Sensex opened nearly flat at around 78,238 in early trade. However, the market slipped shortly after the opening. At around 9:32 a.m., the Sensex was trading at 78,028.13, down 177.85 points or about 0.23 percent.
The National Stock Exchange’s benchmark Nifty-50 also opened nearly flat at around 24,231. The index registered a mild decline in early trading. At around 9:33 a.m., the Nifty was trading near 24,209, down about 52 points.
Early trading reflected cautious investor activity. Profit booking was observed in several large-cap stocks, which exerted pressure on the indices.
Profit booking in banking stocks
Profit booking was seen in several large banking stocks during the day’s trading session. Declines in stocks such as ICICI Bank and HDFC Bank contributed to downward pressure on the broader market.
Banking stocks had recorded notable gains in recent sessions. As a result, investors began booking profits, which was reflected in early trading activity. However, the market did not witness uniform weakness, as buying interest was observed in index heavyweight Reliance Industries, providing some support to the indices.
Positive cues from Asian markets
Asian equity markets traded with a positive trend during Wednesday morning’s session. The decline in crude oil prices supported Asian markets. South Korea’s Kospi index was trading about 3.24 percent higher, while Japan’s Nikkei 225 index was up around 1.98 percent.
Lower crude oil prices tend to support Asian economies that import large volumes of oil, as it can ease pressure related to inflation and economic growth.
Trend in US markets
US stock futures were trading higher during the Asian trading session. Futures on the S&P 500 were up about 0.45 percent, while futures on the Dow Jones Industrial Average were higher by around 0.42 percent.
However, US equity markets had closed lower on Tuesday. Investors assessed tensions between the United States and Iran, potential military risks, and global economic conditions. By the end of the session, the S&P 500 closed about 0.21 percent lower, while the Dow Jones Industrial Average declined around 0.07 percent.
Brent crude trades below $88 per barrel
During the Asian trading session, Brent crude oil prices were trading below $88 per barrel. The decline in oil prices has also influenced global markets. According to reports, the International Energy Agency (IEA) has proposed the largest oil release to date to offset supply disruptions caused by tensions between the United States and Iran.
According to a report by The Wall Street Journal, the move could be aimed at maintaining balance in global oil supply. Meanwhile, US Energy Secretary Chris Wright had claimed in a post that the US Navy had provided security to oil tankers passing through the Strait of Hormuz. The post was later deleted.
Two new IPOs open for subscription
Two new initial public offerings opened for subscription in the stock market on Wednesday. The IPOs of Rajmarg Infra Investment Trust (InvIT) and Epsis Aerocom became available for investors from Wednesday.
Meanwhile, the Innovision IPO entered its second day of subscription. The issue received limited response from investors on the first day.
On the first day, the issue was subscribed 0.02 times. It is a book-built issue of approximately ₹322.84 crore comprising both a fresh issue and an offer for sale. Investors are also monitoring activity in the IPO market, as several new issues have attracted investor interest in recent months.
