Indian equity benchmarks opened on a weak note on Thursday as global market sentiment remained cautious after the US Federal Reserve indicated that interest rates could stay higher for longer later this year.
In early trade, the BSE Sensex declined around 100 points, while the NSE Nifty slipped below the 24,050 mark. Market participants remained watchful of global cues, foreign fund flows and movements in crude oil prices.
Financial stocks offered some support to the broader market. Bajaj Finance, Bajaj Finserv and Asian Paints were among the notable gainers in morning trade, attracting buying interest amid optimism surrounding domestic economic fundamentals.
However, weakness in information technology stocks weighed on sentiment. Tata Consultancy Services (TCS), Tech Mahindra and Infosys featured among the key losers as investors assessed the impact of higher-for-longer US interest rates on technology spending and export-oriented businesses.
Broader markets were relatively resilient, with select mid-cap and small-cap stocks witnessing buying interest despite the weak opening. Analysts said lower crude oil prices continue to support sentiment by easing concerns over inflation and India’s import bill.
Investors are also keeping an eye on developments in global markets after the Federal Reserve maintained a cautious stance on inflation. The central bank’s outlook has raised concerns that borrowing costs could remain elevated for longer than expected.
As trading progresses, market participants will monitor sector-specific trends, institutional flows and overseas cues for further direction. For now, gains in financial stocks are being offset by weakness in IT counters, leaving benchmark indices under pressure in early trade.
Market experts believe domestic fundamentals remain supportive, backed by steady economic growth and improving corporate earnings. However, uncertainty over global monetary policy and geopolitical developments may keep investors cautious in the near term.
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