Domestic equity market benchmarks opened on a flat note on Wednesday as crude oil prices surged to nearly $92 per barrel and rising global bond yields dampened appetite for risk assets.
The Sensex opened at 77,218.05, down 17.41 points or 0.02 per cent, while the Nifty started the session at 24,152.05, declining 2.85 points or 0.01 per cent.
Sectorally, IT stocks led gains among sectoral indices in early trade, with Nifty IT rising 0.82 per cent. Nifty MidSmall IT & Telecom gained 0.59 per cent, while Nifty Realty and Nifty REITS & Realty rose up to 0.2 per cent each.
Among the declining indices, Nifty Metal fell 0.35 per cent, followed by Nifty Auto, which declined 0.14 per cent. Nifty MidSmall Healthcare dropped 0.10 per cent, while Nifty Pharma, Nifty Chemicals and Nifty500 Healthcare declined 0.09 per cent each.
Analysts said the ongoing weakness was primarily driven by rising crude oil prices and higher global bond yields.
They said uncertainty over the Middle East conflict has pushed crude prices higher, raising concerns over inflation and putting upward pressure on bond yields. The US 30-year bond yield is currently at its highest level since 2007.
However, strong domestic fundamentals, improving GDP and earnings growth prospects for FY27, and robust domestic liquidity are helping the Indian market remain resilient.
Market experts said long-term investors could use the weakness to accumulate quality growth stocks, particularly as momentum remains stronger in the mid- and small-cap segments.
Asian markets also declined amid continued weakness in semiconductor stocks, while crude oil prices rose to their highest level in more than three weeks.
International benchmark Brent crude traded around $92 per barrel after Iran took a tougher stance and said the Strait of Hormuz would remain closed, while the US ruled out extending the ceasefire.
