Indian stock markets opened in the red on Friday as rising fuel prices across the country and strengthening global crude oil rates weighed on investor sentiment, although global markets remained focused on the ongoing summit between the US and China.
The BSE Sensex fell 64.22 points or 0.09 per cent to 75,334.50 in early trade, while the NSE Nifty 50 remained almost flat with a negative bias, falling 1.55 points to 23,688.05.
“The bias is cautiously bullish, but bulls need to cross 23,790 supply first, with 24,000 being a major hurdle. 23,500 is immediate support for defense; breach would expose 23,300,” said Rajesh Palvia, head of research at Axis Direct.
Also read: India’s wholesale inflation rises to 8.3% on oil shocks and weak rupee
This slight decline comes after a significant policy change as the Center increased the prices of petrol and diesel ₹Rs 3 each across the country. Petrol prices increased in the national capital ₹from 94.77 ₹Whereas diesel prices have increased by Rs 97.77 per liter. ₹from 87.67 ₹90.67 per litre.
With the arrival of petrol, similar growth is being seen in other metros too. ₹108.74 (3.29) in Kolkata, ₹103.67 (2.83) in Chennai and ₹106.68 (3.14) in Mumbai. Diesel prices in Mumbai, Kolkata and Chennai are now at 90 percent ₹93.14 (3.11), ₹95.13 (3.11) and ₹95.25 (2.86) per liter respectively.
On the sectoral front, performance was mixed as Nifty IT index was the lead gainer with a gain of 1.27 per cent, followed by Nifty Auto with a gain of 0.93 per cent and Nifty Pharma with a gain of 0.30 per cent.
Also read: India’s crude imports fall 17% amid supply shock
In contrast, selling pressure was evident in the Nifty PSU Bank index, which declined 0.55 per cent. Nifty Metal and Nifty Financial Services sectors are also trading down by 0.46 per cent and 0.25 per cent respectively.
Ongoing volatility was reflected in commodity markets as Brent crude rose 1.10 per cent to US$106.89 a barrel. Similarly, WTI crude oil increased by 1.22 percent to US $ 102.41 per barrel. Meanwhile, gold prices saw a decline of 0.79 per cent in the CFD markets and traded at US$4,614.28.
Global cues remained mixed overnight. U.S. stock futures were little changed Thursday night after the Dow Jones Industrial Average reclaimed the 50,000 threshold and the S&P 500 closed above 7,500 for the first time. Investors are also keeping an eye on the ongoing summit between America and China.
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At the time of filing this report, Dow futures fell 10 points, or 0.02 percent. S&P 500 futures fell 0.02 percent, while Nasdaq 100 futures rose 0.06 percent.
“Overnight, US benchmarks hit new records – the S&P 500 rose 0.77%, the Dow regained 50,000 (0.74%), and the Nasdaq added 0.88% – driven by Cisco’s 13% jump and Nvidia’s H200 chip clearance. Asian cues are negative this morning; Japan and Korea are trading in the red. GIFT Nifty “Trading a little higher,” Palvia said at 23,734.0 (ANI)
