Markets Slip in Early Trade as HDFC Bank Falls, Foreign Funds Exit

Indian benchmark equity indices opened lower on Tuesday as weakness in heavyweight stocks, continued foreign fund outflows and heightened geopolitical tensions dampened investor sentiment. The 30-share BSE Sensex declined 58.89 points, or 0.08 per cent, to 77,649.63 in early trade, while the NSE Nifty slipped 22.45 points, or 0.09 per cent, to 24,216.05.

Among Sensex constituents, HDFC Bank, Eternal, Reliance Industries, Axis Bank, Sun Pharma and Maruti were among the major laggards. HDFC Bank fell for the second consecutive session after its latest quarterly earnings raised concerns over margins, adding pressure to the benchmark indices given the bank's significant weight in the market.

On the other hand, Tech Mahindra, UltraTech Cement, Asian Paints and HCL Technologies were among the gainers. Persistent selling by foreign institutional investors also remained a key concern for the domestic market. According to exchange data, FIIs sold equities worth ₹1,121.04 crore on Monday, reflecting cautious overseas investor sentiment amid global uncertainties.

Geopolitical tensions also contributed to the cautious mood. The escalating US-Iran conflict has heightened risk aversion among investors, limiting appetite for equities and raising concerns about disruptions in global energy markets. Brent crude, the global oil benchmark, was trading 0.63 per cent lower at $88.66 a barrel, although market participants remained wary of a potential rebound in oil prices.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said near-term market trends would be significantly influenced by crude oil prices. While the easing of Brent prices towards $88 a barrel was seen as positive, continued uncertainty created an upside risk to crude prices, which could weigh on equities.

Ponmudi R, CEO of Enrich Money, said a combination of external headwinds had reinforced a risk-off mood, restricting investors' willingness to take fresh positions in the stock market. Asian markets offered some relief, with South Korea's KOSPI rising 3.68 per cent, Japan's Nikkei 225 gaining 2.41 per cent and Shanghai's SSE Composite advancing 0.62 per cent, while Hong Kong's Hang Seng traded marginally higher. The domestic market had also ended weaker on Monday, with the Sensex falling 442.93 points to 77,708.52 and the Nifty declining 95.80 points to 24,238.50.