Indian benchmark indices opened on a cautious note on Wednesday after six consecutive sessions of losses, with early indicators pointing to a largely flat start. Weak Asian markets, a selloff in semiconductor stocks, elevated global bond yields and crude oil prices above $91 a barrel are expected to keep investors cautious.
The BSE Sensex opened under 77,200, slipping nearly 40 points, while the NSE Nifty50 tested 24,150, after taking a hit of 41 points, as of 9:16 AM.
The GIFT Nifty was trading at around 24,210 at 7:40 AM, up 31 points, or 0.13 per cent, suggesting a subdued start for the Nifty50.
At around 9:02 AM, the Sensex was trading at 77,239.38, up 3.92 points, or 0.01 per cent, while the Nifty stood at 24,136.25, down 18.65 points, or 0.08 per cent.
The muted opening comes after the benchmarks extended their losing streak on Tuesday, with the Sensex falling 492.70 points and the Nifty declining 132.75 points.
Investors are likely to track global equity trends, movements in crude oil and bond yields, as well as institutional flows, for further direction during the session.
Asian equities came under pressure on Wednesday as losses in semiconductor stocks intensified across the region.
The MSCI Asia-Pacific equities index declined around 1.6 per cent. South Korea's Kospi plunged as much as 6.8 per cent, dragged down by steep falls in Samsung Electronics and SK Hynix, both of which dropped more than 7 per cent.
Japan's Topix declined 2.3 per cent, while Nikkei 225 futures fell 2.5 per cent. Hang Seng futures were also lower by around 0.3 per cent.
The broader weakness came amid concerns over rising bond yields and the heavy capital expenditure associated with the artificial intelligence boom.
ALSO READ: India-Japan Trade At $27.5 Billion, But Potential Is Much Higher: Piyush Goyal
US equities declined for a third consecutive session on Tuesday, with semiconductor stocks leading the sell-off.
The Nasdaq Composite fell 1.33 per cent, while the S&P 500 declined 0.69 per cent. Both indices recorded their steepest single-day percentage falls since July 29.
The Dow Jones Industrial Average slipped 0.22 per cent.
Crude oil prices continued to move higher as the US-Iran conflict showed little indication of reaching a resolution.