Mumbai, Jul 21 (PTI) Market benchmark indices Sensex and Nifty drifted lower in early trade on Tuesday dragged by blue-chip HDFC Bank and persistent foreign fund outflows.
Escalating US-Iran conflict also reinforced a risk-off sentiment, limiting investors’ appetite for equities, according to a market expert.
The 30-share BSE Sensex dipped 58.89 points to 77,649.63 in opening trade. The 50-share NSE Nifty slipped 22.45 points to 24,216.05.
From the Sensex pack, Eternal, HDFC Bank, Reliance Industries, Axis Bank, Sun Pharma and Maruti were among the laggards.
HDFC Bank declined for the second day after the lender’s quarterly earnings disappointed on the margin front.
Tech Mahindra, UltraTech Cement, Asian Paints and HCL Tech were among the winners.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,121.04 crore on Monday, according to exchange data.
Brent crude, the global oil benchmark, quoted 0.63 per cent lower at USD 88.66 per barrel.
“In the near-term the market will be unduly influenced by the trends in crude price. Even though the softening of the Brent crude to about USD 88 level is a positive sign the uncertainty is so huge that there is an upside risk to crude price. This will weigh on markets,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
In Asian markets, South Korea’s KOSPI rebounded by 3.68 per cent, Japan’s Nikkei 225 index climbed 2.41 per cent and Shanghai’s SSE Composite index traded 0.62 per cent higher, while Hong Kong’s Hang Seng index quoted marginally up.
US markets ended lower on Monday.
“The combination of external headwinds has reinforced a risk-off mood, limiting investors’ appetite for equities,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
On Monday, the Sensex declined 442.93 points, or 0.57 per cent, to settle at 77,708.52. The Nifty edged lower by 95.80 points, or 0.39 per cent, to end at 24,238.50.
