Indian benchmark indices open lower amid range-bound trade; Nifty slips over 75 points

New Delhi [India], August 14 (ANI): Indian benchmark equity indices opened lower on Friday, with the Sensex declining over 300 points and the Nifty falling more than 75 points amid moderate selling pressure in early trade.
The BSE Sensex stood at 77,763.01 points, down 316.95 points or 0.41 per cent, while the NSE Nifty 50 traded at 24,320.40 points, lower by 75.45 points or 0.31 per cent.
Commenting on the domestic market trend, VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said, "The range bound nature of the market is likely to continue in the near-term. Nifty has been consolidating between 23800 and 24400 without any triggers for a breakout above the upper band or a breakdown below the lower band. Major activity is now centred around the mid and small-cap space. This trend is likely to continue. Select private sector banks offer value buying opportunities for the long-term."
He added, "Nifty was poised for a breakout above the upper band, but this was foiled by spurt in crude to above $91 triggered by the absence of an expected deal between US and Iran."
"Now Brent crude has cooled off to below $87, which is a mild positive for the market. Even though FPI selling has tapered out and they had turned buyers recently, a clear trend in FII activity is yet to emerge," he stated.
At the time of reporting, Brent crude was trading at USD 87.14 per barrel, while crude oil stood at USD 81.42 per barrel.
The decline in domestic equities came despite positive cues from US markets. Dow Jones Futures stood at 53,886.07 points, up 0.09 per cent, while S&P 500 futures traded at 7,798.99 points, higher by 0.65 per cent. Nasdaq futures stood at 26,803.03 points, up 0.81 per cent.
Meanwhile, gold prices also remained under pressure amid changing expectations around US monetary policy.
Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, said, "Gold prices edged lower after retreating from a 10-week high, but remained on track for a second consecutive weekly gain as softer U.S. inflation data reduced expectations of an imminent Federal Reserve rate hike."
At the time of reporting, gold traded at USD 4,326.58 per ounce, down 0.53 per cent or USD 22.97.
Modi added, "July PPI reinforced the dovish shift, with headline prices unchanged M/M and core PPI rising 0.2%, both below expectations, following a softer-than-expected CPI earlier this week. Markets now price roughly a one-in-three probability of a September rate hike."
He said geopolitical developments, particularly those around the Strait of Hormuz, would remain important for both gold prices and monetary policy. A sustained reopening could ease concerns over energy supplies and reduce inflationary pressure, while renewed disruptions could push oil prices higher and revive expectations of tighter monetary policy.
"With U.S. employment data and Chair Kevin Warsh's Jackson Hole remarks ahead, gold's near-term direction will remain sensitive to shifts in rate expectations, while Hormuz developments continue to add geopolitical uncertainty," Modi said. (ANI)