Geopolitical Jitters Keep Markets On Edge, Sensex and Nifty Trade Flat In Early Deals

Mumbai: Indian equity benchmarks traded nearly flat in early deals on Thursday as Brent crude above $101 a barrel, rising US bond yields and heightened geopolitical tensions kept investors cautious.

The BSE Sensex was down 21.32 points, or 0.03%, at 74,742.91, while the NSE Nifty 50 slipped 7.85 points, or 0.03%, to 23,423.65.

Sensex had opened 21.69 points lower at 74,742.54. Nifty, however, began marginally higher at 23,446.60.

PSU Banks, Oil & Gas Gain

Sectoral performance remained mixed. Nifty PSU Bank climbed more than 1%, emerging as the strongest sectoral index in early trade, while Nifty Oil & Gas gained 0.61%.

Media, FMCG, private banking and IT stocks also traded in positive territory.

Nifty Auto was the biggest sectoral loser, declining 0.66%. Healthcare, pharmaceuticals, consumer durables and cement stocks also faced selling pressure.

Mahindra & Mahindra fell 1.3%, while Bajaj Auto, Asian Paints and Eicher Motors were among other major Nifty laggards.

Brent Above $101 Raises Concerns

Market sentiment remained fragile as Brent crude climbed above $101 per barrel, raising concerns over India's import costs, inflation and corporate profitability.

The US 10-year Treasury yield also rose to 4.83%, fuelling concerns about a possible US Federal Reserve rate hike this month.

Prolonged crude prices above $100 could weigh on India's economic growth and put pressure on energy-sensitive sectors such as aviation, paints, adhesives, tyres and chemicals.

Nifty Levels to Watch

The Nifty's fall below 23,500 has weakened the near-term technical structure.

The 23,260-23,000 zone is seen as the next major support area, while 23,520 has emerged as an important upside level.

FMCG, pharmaceuticals and healthcare could remain relatively resilient if volatility persists, while geopolitical developments and crude oil prices are likely to guide near-term market direction.