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Sensex, Nifty open flat amid renewed crude oil price rally, global tensions
The 30-share BSE Sensex declined 307.24 points, or 0.40 per cent, to close at 76,957.27 with 20 of its constituents ending lower and 10 with gains on Monday
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Sensex and Nifty opened flat on Tuesday after closing lower on Monday due to selling in IT and FMCG shares as renewed tensions in West Asia triggered a rally in crude oil prices.
On opening, Sensex was trading at 76,837.57, 119.70 points down while Nifty traded at 24,038.60, about 41 points down on Tuesday.
The 30-share BSE Sensex declined 307.24 points, or 0.40 per cent, to close at 76,957.27 with 20 of its constituents ending lower and 10 with gains on Monday. During the day, it slipped 513.19 points, or 0.66 per cent, to 76,751.32, according to data cited in a PTI news agency report.
The 50-share NSE Nifty dropped 95.25 points, or 0.39 per cent, to end at 24,080.40.
Weak trends in global markets and foreign fund outflows dented investor sentiment, according to analysts cited in the PTI report.
Among the 30 Sensex firms, Adani Ports, ITC, Bharti Airtel, HDFC Bank, Infosys and Kotak Mahindra Bank were the major laggards.
Sun Pharma, ICICI Bank, Axis Bank and State Bank of India were among the gainers.
Brent crude, the global oil benchmark, jumped 3.63 per cent to USD 91.30 per barrel.
"Escalating tensions between the US and Iran have kept investors on edge, as fading prospects of a diplomatic breakthrough pushed crude oil prices and global bond yields higher. Rising crude oil prices and bond yields have renewed concerns over energy-led inflation and a higher interest rate environment, which could weigh on the earnings cycle," Vinod Nair, Head of Research, Geojit Investments Limited, said.
Meanwhile, the Fed chair's recent comments after the Jackson Hole address have increased expectations of a potential September rate hike, keeping global yields elevated and contributing to near-term volatility in emerging markets, he added.
