Mumbai, June 4 (IANS) Domestic equity markets opened lower on Thursday, tracking weak global cues amid geopolitical uncertainty in West Asia and selling pressure across the US and Asian equities.

Sensex opened at 73,935.83, down 0.55 per cent or 410 points, while Nifty fell over 100 points or 0.5 per cent.

Sectoral indices, Nifty Realty declined 0.67 per cent, Nifty IT was down 0.53 per cent. Similarly, pharma and healthcare indices decreased by up to 0.5 per cent.

In contrast, Nifty Consumer Durables, Nifty Oil & Gas, Nifty Cement and Nifty Chemicals were trading marginally higher.

Meanwhile, Trent, Eicher Motors, Cipla, Infosys and HDFC Bank were top losers of the Nifty index, declining up to 1 per cent.

According to analysts, near-term headwinds continue to outweigh tailwinds, with ongoing uncertainty in West Asia and sustained foreign portfolio investor (FPI) selling remaining key pressure points.

“In the absence of any resolution to the West Asia crisis, there is little scope for a meaningful rally. The strong momentum in US, Japan, South Korea and Taiwan markets suggests continued FPI outflows from India,” market experts said.

They added that trading in the current volatile environment remains risky, advising investors to adopt a “wait and watch” approach. However, analysts said further weakness could offer accumulation opportunities in quality stocks under temporary pressure from foreign flows.

Moreover, Israel and Lebanon have agreed to implement a ceasefire to end hostilities, the US administration said on Wednesday, raising hopes of a broader diplomatic breakthrough aimed at easing tensions in the Iran conflict.

Tehran, which had earlier linked any potential agreement with the United States to an end to fighting between Israel and Lebanon, struck Kuwait earlier in the day, damaging its airport and injuring dozens of people. In response, the US military carried out strikes near the strategic Strait of Hormuz.

Meanwhile, crude oil prices declined, with Brent crude falling 1.33 per cent to $96.50 per barrel and US West Texas Intermediate (WTI) slipping 1.31 per cent to $94.76 per barrel.

In Asia, markets remained under pressure, with Japan’s Nikkei, Hong Kong’s Hang Seng, South Korea’s KOSPI and Indonesia’s Jakarta Composite falling up to 3 per cent.

On Wall Street overnight, equities also ended lower, with the S&P 500 declining 0.74 per cent and the Nasdaq closing 0.9 per cent lower.

–IANS

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