Sensex and Nifty Post Flat Opening Amid Rebound in Metal Stocks

Indian Equity Benchmarks Open on a Muted Note on Monday

The Indian equity benchmarks, Sensex and Nifty, opened on a cautious note on Monday following last week's sharp sell-off. The Sensex was up 77 points or 0.1 percent at 74,641 at 09:20 am, while the Nifty gained 35 points to 23,186.

The modest recovery follows a steep decline in the previous session on March 13, when the Sensex plummeted 1,470 points and the Nifty dropped 488 points due to rising geopolitical tensions and elevated crude oil prices. The market breadth was weak, with 1,836 shares declining against 938 advances on the National Stock Exchange (NSE).

Global Cues Remain Mixed

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Global markets traded cautiously on Monday, with investors closely watching developments in the Gulf region and their potential impact on global energy supplies and inflation. The US stocks ended lower on Friday, with the Dow Jones falling 119 points and the S&P 500 and Nasdaq declining 0.6 percent and 0.9 percent, respectively.

Crude Oil Prices Ease Slightly

Crude oil prices eased slightly in early trade after reports that the United States is working with other countries to safeguard shipping routes through the Strait of Hormuz. However, prices remain elevated after a recent rally that pushed Brent crude above $100 per barrel, heightening concerns about inflation and global growth.

Institutional Selling Continues

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Foreign institutional investors extended their selling to an 11th consecutive session on March 13, offloading equities worth over Rs 10,000 crore. Domestic institutional investors bought nearly Rs 10,000 crore, helping cushion the impact of the outflows.

Sectoral Performance

The Nifty Metal index rose around 0.7 percent in early trade, with metal stocks leading early gains. Other gainers included Tata Consumer Products, Cipla, Apollo Hospitals, SBI Life Insurance, and NTPC, which rose between 0.5 percent and nearly 2 percent.

Market Volatility Eases Slightly

Market volatility showed signs of easing slightly, with the India VIX falling about 4 percent in early trade.