Key Indian equity indices opened lower on Tuesday in line with their Asian peers, as the steep fall in crude oil prices the day before dented energy shares globally and pulled down the markets.
Against the previous close at 25,530.11 points, the sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened at 25488.42 points.
Within minutes into trading, the key index was ruling at 25,434.86 points, with a loss of 95.2 points, or 0.37 percent.
At the National Stock Exchange (NSE), the broader 50-share Nifty was ruling at 7,738.65 points with a loss of 26.75 points, or 0.34 percent, over the previous close at 7,765.40 points.
The main reason for the poor sentiments were the continuing fall in the global crude oil prices — which remained close to seven-year lows in the early trades of Tuesday in the Asian markets.
At Friday’s meeting of the Organisation of the Petroleum Exporting Countries (OPEC), there was no agreement on production cuts.
On Monday, after opening higher, both the two key indices dipped successively to finally end the day in the red.
The 30-share Sensex fell by 108 points, or 0.42 percent, while the Nifty fell 16.50 points, or 0.21 percent.
“Indian market continued to slide for the fourth day as foreign fund selling amid growing fears over the interest rate hike in the US this month kept investors nervous,” Angel Broking said in an analysis, ahead of the opening bell on Tuesday.
In the Asia Pacific region, Japan’s Nikkei, Australia’s S&P/ASX 200, Hong Kong’s Hang Seng, China’s Shanghai Composite and South Korean Kopsi were all down in early trades on Tuesday.
As regards the US, the brokerage said the negative close on Monday on due to the weakness was on the back of resource and energy stocks coming under pressure, amid notable decline in commodities and oil prices.
“Selling pressure was also generated by concerns about the outlook for monetary policy ahead of next week’s Federal Reserve meeting.”
The European markets were affected both by developments closer home and in the global oil markets.
“Sparked by European Central Bank President Mario Draghi’s dovish comments on Friday, European markets rallied in early trade yesterday. But the markets pulled back on account of decline in oil prices and weaker opening in the US markets,” the Angel Broking report added.