Mumbai: Indian equity benchmarks opened slightly lower on Wednesday as investors weighed mixed global cues and continued selling by foreign funds.
The Nifty started at 22,665, down about 50 points, or 0.23 per cent. The Sensex opened at 72,441.15, off 87.92 points, or 0.12 per cent.
In early trade, the Nifty MidSmall IT & Telecom index led sectoral gains with a rise of more than 1 per cent. Nifty PSU Bank, Nifty Chemicals, Nifty Oil & Gas, Nifty Cement and Nifty Media were also up by as much as 1 per cent.
Metal stocks lagged, with Nifty Metal down 0.42 per cent. Healthcare and pharmaceutical indices were marginally lower.
Market experts said higher US bond yields were adding to foreign selling, while the recent decline had left parts of the Indian market looking cheaper. “From the Indian investors’ perspective, this sharp correction in the market presents an opportunity. Largecaps with good growth prospects have reached attractive valuations,” they said. A fall in crude oil prices, they added, could help spark a rally led by large-cap stocks.
Technical analysts said the market may try to stabilise after its recent slide, with buying seen around key levels. The Nifty formed a hammer candle in the previous session, a sign of demand at lower prices, and strength in some heavyweight stocks helped cap the fall. After a reversal from 22,600, the near-term setup was described as sideways to mildly bullish. Immediate support was seen at 22,650–22,700 and resistance at 22,950–23,000.
Provisional data showed foreign institutional investors sold equities worth nearly Rs 10,000 crore on Tuesday, extending their selling streak to a fourth session. Domestic institutional investors bought shares worth nearly Rs 7,000 crore.
Asian markets were broadly higher in early trade despite a mildly weaker session on Wall Street. Investors were watching upcoming US economic data and wider global trends for the next cue.