Mumbai, Aug 10: Market benchmark indices Sensex and Nifty drifted lower in early trade on Monday amid a spike in crude oil prices due to geopolitical uncertainties.
The 30-share BSE Sensex dipped 19.38 points to 78,479.79 in early deals. The 50-share NSE Nifty skidded 5.10 points to 24,567.45.
Later in the trade, the BSE benchmark declined 158.62 points to 78,340.55, and the Nifty edged lower by 45.20 points to 24,524.95.
From the Sensex pack, Eternal, State Bank of India, InterGlobe Aviation, Power Grid, NTPC and Bharti Airtel were among the laggards.
Titan, Infosys, Tech Mahindra and HCL Tech were among the winners.
Brent crude, the global oil benchmark, traded 1.03 per cent higher at USD 84.41 per barrel.
“Elevated crude prices remain a key risk. Brent crude has risen for the third consecutive session to around USD 84.4 a barrel after Iran indicated no immediate reopening of the Strait of Hormuz, while weekend attacks on Gulf shipping have kept the geopolitical risk premium elevated,” Rajesh Palviya, Head of Research, Axis Direct, said.
Foreign Institutional Investors (FIIs) bought equities worth Rs 480.24 crore on Friday, according to exchange data.
“The undertone of the market is mildly bullish. The principal bullish factor is the better-than-expected Q1 results. With the earnings season coming to an end this week, vast majority of companies have reported earnings growth that has beaten expectations,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
FIIs turning buyers in July and continuing their buying in most of the days in August, so far, is another positive factor, he added.
In Asian markets, South Korea’s KOSPI, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index quoted higher.
US markets ended in positive territory on Friday.
“Asian markets are trading higher in early trade, with Japan’s Nikkei 225 and South Korea’s Kospi each advancing more than 1 per cent, providing a constructive backdrop for regional equities,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
On Friday, the Sensex dropped 455.59 points, or 0.58 per cent, to settle at 78,499.17. The Nifty dipped 65.35 points, or 0.27 per cent, to end at 24,570.65.
