Sensex 40 Points Down, Nifty Tests 24,150 Amid Weak Asian Markets And Crude Prices Over $91

The GIFT Nifty was trading at around 24,210 at 7:40 AM, up 31 points, or 0.13 per cent, suggesting a subdued start for the Nifty50.

Asian equities came under pressure on Wednesday as losses in semiconductor stocks intensified across the region.

Source : ABPLIVE AI

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Key points generated by AI, verified by newsroom

• Indian benchmark indices opened cautiously after continuous losses Wednesday.
• Global markets, semiconductor sell-off, elevated oil, caused pressure.
• Crude oil prices continued rising for the fourth consecutive session.

Indian benchmark indices opened on a cautious note on Wednesday after six consecutive sessions of losses, with early indicators pointing to a largely flat start. Weak Asian markets, a selloff in semiconductor stocks, elevated global bond yields and crude oil prices above $91 a barrel are expected to keep investors cautious.

The BSE Sensex opened under 77,200, slipping nearly 40 points, while the NSE Nifty50 tested 24,150, after taking a hit of 41 points, as of 9:16 AM.

GIFT Nifty Signals A Flat Opening

The GIFT Nifty was trading at around 24,210 at 7:40 AM, up 31 points, or 0.13 per cent, suggesting a subdued start for the Nifty50.

At around 9:02 AM, the Sensex was trading at 77,239.38, up 3.92 points, or 0.01 per cent, while the Nifty stood at 24,136.25, down 18.65 points, or 0.08 per cent.

The muted opening comes after the benchmarks extended their losing streak on Tuesday, with the Sensex falling 492.70 points and the Nifty declining 132.75 points.

Investors are likely to track global equity trends, movements in crude oil and bond yields, as well as institutional flows, for further direction during the session.

Asian Markets Slide As Semiconductor Selloff Deepens

Asian equities came under pressure on Wednesday as losses in semiconductor stocks intensified across the region.

The MSCI Asia-Pacific equities index declined around 1.6 per cent. South Korea's Kospi plunged as much as 6.8 per cent, dragged down by steep falls in Samsung Electronics and SK Hynix, both of which dropped more than 7 per cent.

Japan's Topix declined 2.3 per cent, while Nikkei 225 futures fell 2.5 per cent. Hang Seng futures were also lower by around 0.3 per cent.

The broader weakness came amid concerns over rising bond yields and the heavy capital expenditure associated with the artificial intelligence boom.

Wall Street Ends Lower As Tech Stocks Come Under Pressure

US equities declined for a third consecutive session on Tuesday, with semiconductor stocks leading the sell-off.

The Nasdaq Composite fell 1.33 per cent, while the S&P 500 declined 0.69 per cent. Both indices recorded their steepest single-day percentage falls since July 29.

The Dow Jones Industrial Average slipped 0.22 per cent.

Crude Oil Rises For Fourth Straight Session

Crude oil prices continued to move higher as the US-Iran conflict showed little indication of reaching a resolution.

Brent crude rose 0.29 per cent to $91.28 per barrel, extending its gains to a fourth consecutive session. The benchmark had climbed around 4.5 per cent over the preceding three sessions.

West Texas Intermediate (WTI) crude advanced to $85.31 per barrel.

Elevated oil prices remain a concern for Indian equities as they can influence inflation, the rupee and corporate margins.

FIIs Turn Buyers, DIIs Extend Buying Streak

Institutional flows provided a positive domestic signal despite the recent weakness in benchmark indices.

According to provisional data, foreign institutional investors (FIIs) turned net buyers on Tuesday, purchasing Indian equities worth Rs 1,651 crore.

Domestic institutional investors (DIIs) also remained net buyers for the sixth consecutive session, investing another Rs 2,579 crore in equities.

The renewed institutional support could provide some cushion to the domestic market amid weak global cues.

Expert View: Nifty Faces Key Support At 24,000

Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the benchmarks continued to see profit-booking at higher levels, with the Nifty ending 132 points lower and the Sensex losing 493 points.

He noted that the defence index gained 1.30 per cent, while IT was the weakest-performing sector, declining 1.90 per cent.

From a technical perspective, Chouhan said the market's recent price action points to continued weakness. He highlighted 24,200/77,300 as an important level, saying sentiment could remain weak as long as the indices trade below it.

According to him, the Nifty could retest 24,050-24,000, while the Sensex may revisit 77,000-76,700. On the upside, a move above 24,250/77,500 could improve sentiment and open the way towards 24,350-24,400/77,600-77,800.