Mumbai: Indian equity benchmarks opened modestly lower on Wednesday as investors weighed mixed global cues and a fourth straight session of foreign selling.
The Nifty started at 22,665, down about 50 points, or 0.23 per cent. The Sensex opened at 72,441.15, off 87.92 points, or 0.12 per cent.
In early trade, the Nifty MidSmall IT & Telecom index led sectoral gains, rising more than 1 per cent. Nifty PSU Bank, Chemicals, Oil & Gas, Cement and Media were also up by as much as 1 per cent.
Metals lagged, with Nifty Metal down 0.42 per cent. Healthcare and pharmaceutical indices were slightly lower.
Market experts said higher US bond yields were adding to foreign selling, but argued that the recent slide had left some Indian stocks looking cheaper. “From the Indian investors’ perspective, this sharp correction in the market presents an opportunity. Largecaps with good growth prospects have reached attractive valuations,” they said. A fall in crude prices, they added, could help a rebound led by large-cap market leaders.
Technical analysts said the market may try to steady after its recent drop, with buyers appearing near key levels. Nifty formed a hammer candle on Tuesday, a sign of demand at lower prices, while selected heavyweights limited the fall. After a reversal from 22,600, the near-term setup was described as sideways to mildly bullish. Immediate support was seen at 22,650–22,700 and resistance at 22,950–23,000.
Provisional data showed foreign institutional investors sold nearly Rs 10,000 crore of equities on Tuesday, their fourth consecutive session of outflows. Domestic institutions bought nearly Rs 7,000 crore.
Asian markets were broadly higher in early hours even after a mildly weaker session on Wall Street. Investors were watching upcoming US economic data and global trends for the next cue.