Sensex, Nifty Start Marginally Higher, Rising US Yields Keep Investors Cautious

Mumbai: Indian equity benchmarks opened marginally higher on Friday, September 25, even as elevated US Treasury yields, foreign investor selling and geopolitical uncertainty kept sentiment cautious.

At 9.24 am, the Sensex was trading 96 points, or 0.13 percent, higher at 73,676, while the Nifty gained 20 points, or 0.09 per cent, to 23,084.

Broader Markets Stay Muted

The broader market largely tracked the benchmarks. The Nifty Midcap 100 edged 0.03 per cent higher, while the Nifty Smallcap 100 gained 0.06 per cent.

Sectoral performance was mixed. IT, FMCG, consumer durables and healthcare stocks came under pressure.

The Nifty IT index was the biggest sectoral loser, falling 1.37 per cent, while Nifty Realty emerged as the top performer with a gain of 0.59 per cent.

US Treasury Yields Weigh

Global cues remained mixed as the US 10-year Treasury yield climbed above 5.20 per cent and stayed close to multi-year highs.

Higher bond yields tend to reduce the relative appeal of emerging-market equities. A stronger dollar has also added pressure on the Indian rupee.

Geopolitical uncertainty remained another concern, with investors tracking developments involving the US and Iran. Any renewed escalation could increase risks to global energy supplies and push crude oil prices higher.

Key Levels To Watch

The Nifty had closed the previous session at 23,063, down 1.64 percent. Immediate support is seen between 22,800 and 23,000, while resistance is placed at 23,250–23,300.

Bank Nifty, which closed 1.96 per cent lower at 55,438, has immediate support at 55,000–55,200 and resistance at 55,800–56,000.

Asian Markets Trade Mixed

Asian equities were mixed. Japan's Nikkei gained 1.23 per cent and South Korea's Kospi rose 0.9 per cent, while Hong Kong's Hang Seng declined 1.77 per cent. China's Shanghai and Shenzhen indices fell 1.04 percent and 2.34 per cent, respectively.

Foreign institutional investors sold Indian equities worth Rs 5,027 crore on September 24, while domestic institutional investors purchased shares worth ₹4,301 crore.