Sensex, Nifty tumble soon after opening in Green amid downside risk to growth and upside to inflation

New Delhi [India], May 13 (ANI): Markets opened in green on Wednesday as the Indian equity benchmarks attempted a recovery following consecutive declines, but soon declined as the selling pressure continued.
The BSE SENSEX opened at 74,809.68 points, up by 250.44 points or 0.34 per cent. Similarly, the NSE NIFTY 50 started at 23,460.20 points, gaining 80.65 points or 0.34 per cent in the early minutes of the session. The positive start provided a brief relief for investors after a volatile period but it did not stand for long.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments said "Rupee has touched a new low of 95.63 to the dollar. The downside risk to India's growth and upside risk to inflation has increased. This has negative implications for markets. With the AI trade still intact, FIIs are likely to continue on the sell-mode. The derivatives data indicate this. Investors should opt for safety now. Better to remain in cash till there is clarity on the crude price. Pharmaceuticals seem to be the safe sector now. Long-term investors can slowly accumulate large banking stocks on declines."
The market showed a generally positive trend across most sectoral indices, with NIFTY Metal leading the gains at a significant 1.44 per cent increase. Other sectors showing steady growth include NIFTY Pharma (0.67 per cent), NIFTY Healthcare index (0.56 per cent), and NIFTY Oil & Gas (0.46 per cent).
Conversely, a few sectors experienced minor declines, specifically NIFTY media, which dropped by 0.93 per cent, followed by marginal dips in NIFTY IT (-0.04 per cent) and NIFTY PSU Bank (-0.03 per cent).
Overall, indices like NIFTY FMCG and NIFTY Realty remain in the green.
The Indian government has sharply hiked customs duties on precious metals like gold, platinum and silver, citing the need to conserve foreign exchange and protect the economy from growing global pressures stemming from the ongoing West Asia crisis.
Import duty on gold and silver has been raised from 6 per cent to 15 per cent, while platinum will now attract a duty of 15.4 per cent, up from 6.4 per cent. The changes also apply to related items such as gold and silver dore, coins, and findings.
Rajesh Palviya, Head of Research at Axis Direct, noted that the previous session saw a substantial downturn in market sentiment.
"Asian futures are soft this morning, and GIFT Nifty indicates a flat open. The battle lines are clear: 23,300 is immediate support, with 23,100-23,000 as the next zone, while bulls need a daily close above 23,500 for any recovery. Unless and until 23,800 is reclaimed, the bias remains bearish. The broader market saw substantial selling pressure, and one can adopt a sell-on-rise strategy until the Nifty surpasses the 23500-23600 level," Palviya added.
Regional performance across Asia remains varied. The Nikkei 225 climbed 439.43 points and the KOSPI rose by 132.04 points. Conversely, the Taiwan Weighted index faced a significant decline of 661.38 points.
In the US on Tuesday, the Nasdaq dropped 0.7 per cent, while the Dow Jones posted marginal gains. "Wall Street finished mixed overnight after a hotter-than-expected 3.8 per cent April CPI print," Palviya mentioned.
Commodity markets also reflect ongoing global tensions as Brent crude surged near USD 106.49 per barrel due to concerns regarding supply from Iran. Gold remained steady, trading around the USD 4,703.13 level. (ANI)

(This article was generated from news agency ANI without modifications to the text.)