Higher Bond Yields, Geopolitical Uncertainty | Markets Open Cautious
Markets opened Wednesday under pressure as the Nifty50 and Sensex declined amid losses in global equities due to higher bond yields and geopolitical uncertainty. As of early trade, Sensex fell 94.57 points to 77,140.89 and Nifty50 was down 38.30 points at 24,116.60.
The two drivers are familiar but intensifying. US 10-year treasury yields have climbed back toward 4.6 per cent on sticky inflation data, which compresses valuations on rate-sensitive sectors globally. And crude near $89 a barrel, with Strait of Hormuz tensions showing no signs of resolution, continues to act as a tax on India's current account and sentiment.
Sector-wise, Nifty IT, FMCG and Pharma are outperforming in early trade, while Nifty Metal has declined the most. Hindalco Industries, Tata Steel and Mahindra and Mahindra are the top losers in the Nifty50 index. Broader markets are marginally negative, with Nifty MidCap down 0.16 per cent and Nifty SmallCap down 0.06 per cent.
Technically, Nifty has drifted toward the gap-support zone of 24,136 to 24,040, left during the rally on July 29. A decisive break below 24,000 could drag the index further toward 23,800. On the upside, immediate resistance is placed at 24,400 to 24,450. Overall near-term bias remains cautious as long as the index trades below that resistance zone.