The two key equity benchmarks, Sensex and Nifty, on Monday opened in the negative zone as investors remain apprehensive regarding geopolitical conflict between Israel and Gaza and weak Q2FY24 India Inc quarterly results. At 9.40 am, the S&P BSE Sensex dipped 165 points to 66,118. On the other hand, the NSE Nifty50 was trading at 19,711, down 40 points.
On the 30-share Sensex platform, Nestle, Asian Paints, HDFC Bank, Bajaj Finserv, TCS, IndusInd Bank were among losers. On the flip side, HCLTech, Tata Motors, Titan, JSW Steel, UltraCemco, Tata Steel emerged gainers. Among specific stocks, shares of Delta Corp plunged 8 per cent after the company's subsidiary received notice for a goods and services tax of Rs 6,384 for payment of the shortfall tax. HDFC Life stock rose 0.6 per cent after the private insurer posted 15.5 per cent year-on-year (YoY) growth in net profit to Rs 376.77 crore for the quarter ended September 2023.
In the broader markets, the BSE Midcap and Smallcap indices outperformed by rising 0.17 per cent and 0.43 per cent, respectively.
Sectorwise, Nifty Auto and IT indices went up 0.3 per cent each, while the Nifty Bank index fell 0.3 per cent.
In the previous session on Friday, the BSE Sensex ended at 66,283, down 126 points, while the NSE Nifty50 settled at 19,751, down 43 points.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were trading lower. The US markets ended on a mixed note on Friday.
Global oil benchmark Brent crude climbed 0.10 per cent to $90.98 a barrel.
"Concerns regarding the spread of the Israel-Hamas conflict have triggered the sharp spike in Brent crude to above $90 and safe-haven buying has pushed gold to above $1900. From the geopolitical perspective, we are in uncharted territory and, therefore, prudence demands that investors remain cautious," said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
Foreign Institutional Investors (FIIs) were buyers on Friday as they bought equities worth Rs 317.01 crore, according to exchange data.
Meanwhile, the rupee appreciated by 6 paise to 83.24 against the US dollar in early trade on Monday supported by positive macro economic data. Forex traders said falling domestic inflation, rise in industrial production figures and improvement in trade deficit aided the local unit. However, geopolitical tensions, particularly the Israel-Hamas conflict, dented investor sentiments.
At the interbank foreign exchange, the domestic unit opened at 83.25 against the dollar and then touched an early high of 83.24, registering a gain of 6 paise over its previous close. On Friday, the rupee fell 6 paise to settle at 83.30 against the US dollar.