India's stock market opened little changed today, with investors remaining wary of the impact of elevated crude oil prices amid a prolonged Iran war.
The 30-share S&P BSE Sensex fell 0.08% to 75,435.94 points, while the wider NSE Nifty 50 was down 0.06% at 23,393.10. Nine out of the 16 major sectors were in the red.
V.K. Vijayakumar, chief investment strategist at Geojit Investments Ltd., said the Nifty 50's sharp bounce of 257 points yesterday was triggered mainly by short-covering from oversold territory.
However, he warned that the bounce back is unlikely to sustain, given the massive selling by FIIs. In the near-term, this FII selling will continue since other markets like South Korea and Taiwan are giving better returns to FIIs.
Brent crude hovered around $103 a barrel on supply concerns, with the Strait of Hormuz mostly shut and US allies refusing to send warships to help tankers navigate the key chokepoint that handles about 20% of global oil supplies.
The Nifty and Sensex have fallen about 7% each so far this month, as investors assess the fallout from the U.S.-Israeli war on Iran.
Brokerages Citi and Nomura lowered their year-end Nifty targets on Monday, citing the impact of the surge in crude prices on India's growth and corporate earnings.
Foreign investors sold shares worth ₹9,366 crore on Monday, provisional data showed, in their twelfth straight session of selling. Outflows this month have reached $6.9 billion.
