Benchmark indices gave up their opening gains on Tuesday, with selling in information technology stocks dragging the market lower as investors shifted focus to the upcoming June-quarter earnings season.
The BSE Sensex was down 213.73 points, or 0.28%, at 76,514.64 around 9:45 am after opening at 77,005.51. The NSE Nifty50 fell 92.15 points, or 0.38%, to 23,854.10 after initially crossing the 24,000 mark at the open.
EARLY GAINS FIZZLE OUT
The market began the session on a positive note, supported by easing crude oil prices and stable global cues. However, the gains proved short-lived as investors booked profits, pushing both benchmark indices into negative territory.
Brent crude slipped 0.87% to $72.51 per barrel, while WTI crude fell 0.49% to $70.40. Lower oil prices continue to remain a positive for India, which imports the bulk of its crude oil requirements, helping ease inflationary pressures and improve the macroeconomic outlook.
The rupee also opened marginally weaker at 94.57 against the US dollar compared to the previous close of 94.54.
IT STOCKS LEAD DECLINE
IT stocks emerged as the biggest drag on the market, with the Nifty IT index falling 2.08%.
Most sectoral indices traded in the red. Nifty Auto declined 0.60%, Nifty FMCG fell 0.69%, while Nifty Metal slipped 0.54%. Banking indices were relatively resilient, with Nifty Financial Services down just 0.21%.
Among the broader markets, the Nifty Smallcap 100 managed to rise 0.27%, outperforming the benchmark indices, while the Nifty Midcap 100 slipped 0.15%.
EARNINGS SEASON TAKES CENTRE STAGE
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the market currently lacks strong near-term triggers, with Brent crude, US bond yields and the rupee remaining broadly stable.
He said investor attention will gradually shift towards June-quarter earnings in July. According to him, banking and financial services are expected to lead earnings growth, supported by strong credit expansion and healthy net interest margins. Healthcare remains another preferred defensive sector, particularly amid concerns over a weak monsoon.
Vijayakumar added that the power sector is likely to report healthy earnings backed by favourable business prospects, while capital goods companies continue to benefit from robust order books. In contrast, sentiment towards IT remains weak, with management commentary likely to be more important than quarterly numbers. In the automobile sector, he expects stock-specific action.
Rajesh Palviya, Head of Research at Axis Direct, said the 24,000 level remains the immediate hurdle for the Nifty. A sustained move above this level could trigger a recovery towards the 24,120–24,200 zone, while support is seen at 23,900 and then 23,800. He added that despite Monday’s weakness, lower crude oil prices and supportive global markets continue to keep the broader market outlook constructive.
