Mumbai, June 30: Indian benchmark equity indices gave up early gains and traded lower on Tuesday as investors remained cautious despite support from lower crude oil prices and positive global market cues.
The Nifty 50 opened at 24,032.05, up 85.80 points or 0.36 per cent, while the BSE Sensex began the session at 77,005.51, gaining 277.14 points or 0.36 per cent. However, both indices slipped into negative territory during early trade as investors booked profits and tracked domestic and global developments.
Market sentiment at the opening was supported by easing crude oil prices and gains in international markets.
Banking and market expert Ajay Bagga said lower international crude prices could provide relief to the Indian economy if the benefits are passed on to consumers. He noted that the Indian crude basket had fallen to February levels by the end of June, strengthening the case for reductions in petrol, diesel and aviation fuel prices.
Bagga also pointed to deficient monsoon rainfall, estimated at 43 per cent below normal so far, as a factor that could affect rural demand in the coming months.
Referring to global developments, he said the temporary ceasefire between the United States and Iran in the Persian Gulf had eased concerns over shipping through the Strait of Hormuz. However, uncertainty over the stability of the truce continued to support crude oil prices. Brent crude was trading at USD 72.51 per barrel at the time of reporting.
Sectoral indices showed mixed trends. Nifty Realty rose 0.32 per cent, Nifty Oil and Gas gained 0.13 per cent and Nifty Bank edged up 0.04 per cent. Meanwhile, Nifty Auto declined 0.73 per cent, Nifty IT fell 0.68 per cent and Nifty Metal slipped 0.66 per cent.
Among Nifty 50 stocks, Maruti Suzuki, Nestle India, Axis Bank, Sun Pharma and Adani Ports were among the gainers, while Eicher Motors, Tata Consumer Products, Infosys, Hindalco, HDFC Life and SBI Life traded lower.
Asian markets displayed a mixed trend. Japan’s Nikkei 225 gained 1.41 per cent, Taiwan’s weighted index rose 3.09 per cent and South Korea’s Kospi advanced 1.48 per cent. Singapore’s Straits Times declined 0.53 per cent, while Hong Kong’s Hang Seng index fell 1.25 per cent.
On Wall Street, the S&P 500 rose 1.2 per cent and the Nasdaq gained 2.1 per cent on Monday following the announcement of a USD 518 billion semiconductor investment plan in South Korea, which supported technology and artificial intelligence-related stocks.