Domestic equity benchmarks opened lower on Monday, weighed down by selling pressure in information technology (IT) stocks, with the Nifty IT index emerging as the worst-performing sectoral index.
The Sensex opened at 72,990.04, declining 133.79 points, or 0.18 per cent, while the Nifty 50 fell 75.60 points, or 0.33 per cent, to 22,524.40.
Among sectoral indices, Nifty IT dropped over 2 per cent. Nifty MidSmall IT & Telecom, Nifty Realty, Nifty Oil & Gas, Nifty PSU Bank, Nifty Consumer Durables, Nifty Cement and Nifty Auto also declined by up to 1 per cent.
In contrast, Nifty Private Bank advanced 0.49 per cent, while pharmaceutical and healthcare-related indices showed resilience.
Market analysts said that although Brent crude prices had cooled marginally, they remained elevated, potentially limiting the scope for a sustained recovery in equities.
Despite the recent correction, analysts advised investors to focus on value-buying opportunities while remaining cautious about macroeconomic risks arising from high crude oil prices.
They also highlighted the sharp correction in midcap and smallcap stocks, attributing much of last week's broader market weakness to the liquidation of margin-funded positions. However, the correction could present opportunities in select high-growth segments.
Meanwhile, the cooling of the global artificial intelligence (AI) investment theme could prove favourable for Indian markets. Experts noted that foreign portfolio investor (FPI) outflows from South Korea and Taiwan had exceeded those from India in recent months.
In the previous trading session on October 23, foreign institutional investors (FIIs) were net buyers of equities worth Rs 887 crore. Domestic institutional investors (DIIs) continued their buying streak for the fourth consecutive session, purchasing shares worth Rs 3,236 crore.
On the commodities front, Brent crude prices fell more than 2 per cent to around $114 per barrel, while US benchmark West Texas Intermediate (WTI) crude declined over 2 per cent to $100.70 per barrel.
Across Asia, markets opened cautiously as oil prices retreated from six-month highs. Investors were also preparing for a busy week of central bank meetings and corporate earnings, which could test confidence in the AI-driven market rally.
