Sensex, Nifty Open Flat After 3-Day Slide; Oil Prices, Global Cues In Focus

After three days of continuous fall, Indian equity markets opened largely flat on Thursday, September 10, as elevated crude oil prices and weak Asian markets offset support from select banking and oil & gas stocks. At 9:16 am, the Sensex was trading at 74,834.08, up 69.85 points, or 0.09%, while the NSE Nifty was trading at 23,448.45, up 16.95 points, or 0.07%.

Sectorally, the Nifty IT index fell 0.59% in early trade, making it the biggest drag among major sectoral gauges. Nifty Auto declined 0.30%, while the Nifty Financial Services ex-Bank index fell 0.26%.

On the other hand, Nifty Oil & Gas gained 0.55%, while Nifty Realty advanced 0.42% and Nifty PSU Bank rose 0.36%. Nifty Private Bank was up 0.20%, while FMCG gained 0.15%.

Among individual

stocks, NTPC, Bajaj Finserv, SBI, Axis Bank and ITC were among the prominent gainers in the Sensex pack. Power Grid, LT, Reliance Industries and HDFC Bank also traded higher. On the losing side, M&M, Infosys, HCLTech, Tata Steel and TCS were among the notable laggards.

The muted opening came amid continued pressure on global markets, with Asian equities falling as the widening Middle East conflict and a fresh wave of attacks on shipping kept crude oil prices above the psychologically important $100-a-barrel mark. Brent crude futures were around $101.4 a barrel in early trade after briefly crossing $100 on Wednesday for the first time since July.

The escalation in fighting, including renewed tensions involving Saudi Arabia and the Houthis in Yemen, has raised concerns over potential disruptions to energy supplies from the Middle East. Higher oil prices could add to inflationary pressures and weigh on economies that are heavily dependent on energy imports, including India.

Asian markets remained under pressure, with MSCI’s broadest index of Asia-Pacific shares outside Japan down around 1%. Japan’s Nikkei and South Korea’s KOSPI were also down more than 1%. Elevated US Treasury yields added to the cautious mood, with the benchmark 10-year yield holding near 4.84% after touching its highest level since 2023 in the previous session.

Global investors are also awaiting key US inflation data due later this week. US producer price inflation is scheduled for Thursday, followed by consumer price inflation on Friday. The data is expected to play an important role in shaping expectations around the Federal Reserve’s monetary policy at its September 15-16 meeting.

The 10-year US Treasury yield remained elevated after the US Treasury announced a $6 billion buyback of longer-dated bonds, a move that disappointed some investors who had expected a larger operation. Higher bond yields tend to weigh on equities by making fixed-income assets relatively more attractive and raising borrowing costs.

Investors are also looking ahead to the European Central Bank’s policy decision, while the Federal Reserve and Bank of Japan are scheduled to announce their policy decisions next week. Market participants will closely watch policymakers’ comments for clues on the trajectory of interest rates.

For Indian equities, the combination of crude oil above $100, elevated global bond yields, weak Asian markets and uncertainty around global monetary policy is likely to keep volatility elevated, even as domestic buying provides some support at lower levels.