Mumbai (Maharashtra) [India], September 29 (ANI): Indian equity markets opened on a cautious note on Tuesday after the previous session's sharp selloff, with elevated crude prices, rising US bond yields and weak global cues keeping risk appetite subdued.

The Nifty 50 opened at 22,732.45, against its previous close of 22,780.25, and was down 0.28 per cent at 22,715.55, while the Sensex opened at 72,633.68 and was trading 0.31 per cent lower at 72,549.02.

Global markets remained under pressure on Monday as a rebound in crude oil prices and higher bond yields heightened concerns over inflation and interest rates. On Wall Street, the S&P 500 fell 0.77 per cent, the Nasdaq Composite declined 0.92 per cent and the Dow Jones Industrial Average dropped 0.67 per cent. The US 10-year Treasury yield climbed to around 5.23-5.24 per cent, its highest level in years, adding to pressure on equities.

Asian markets also remained weak on Monday, with Japan's Nikkei, South Korea's KOSPI and China's Shanghai Composite closing lower, while Hong Kong's Hang Seng bucked the trend and ended higher. European markets were comparatively subdued, with the pan-European STOXX 600 ending largely flat as gains in British housebuilders were offset by concerns over higher oil prices and elevated bond yields.

"The Indian market has opened on a cautious note today. The recovery is limited because Brent crude has climbed back towards $106-107, while the US 10-year yield is around 5.24%. Asian markets are also trading lower, keeping the overall risk appetite subdued," said Vipin Dixena, market analyst.

Dixena said crude and the rupee remain key factors to watch, with the rupee having closed around Rs 95.98 on Monday and remaining under pressure from higher oil prices and US yields.

He said the Nifty's immediate support lies at 22,750-22,700. "If Nifty holds this area and reclaims 22,900-23,000, we could see a relief bounce. But a decisive breakdown below 22,700 can open the way towards 22,500," Dixena said, adding that 23,000-23,100 would remain a significant supply zone.

Sectorally, Nifty Pharma rose 0.39 per cent and Nifty IT gained 0.06 per cent, while Nifty Media fell 0.77 per cent, Auto declined 0.75 per cent and Metal lost 0.57 per cent. Nifty FMCG and Financial Services also traded lower by 0.43 per cent and 0.39 per cent, respectively.

Among Nifty stocks, Dr Reddy's Laboratories gained 1.97 per cent, followed by Cipla at 1.02 per cent and Sun Pharma at 0.76 per cent. On the losing side, Tata Motors Passenger Vehicles fell 2.40 per cent, HDFC Life declined 1.99 per cent and Bajaj Finance lost 1.45 per cent.

Brent crude was trading at around USD 107 a barrel, up 1.63 per cent, adding to pressure on sentiment and the rupee. Oil prices had risen sharply on Monday amid renewed uncertainty over the situation around the Strait of Hormuz, before paring some gains later in the session.

"The bias is neutral with a cautious tilt. The undertone stays subdued while the index trades below 23,000," said Hemang Gor, Senior Research Analyst - Derivatives and Technical Research, Axis Direct. He placed immediate Nifty support at 22,750-22,700 and resistance at 22,950-23,000, followed by 23,120.

The combination of weak global equities, elevated crude prices and higher US yields is keeping investors cautious at the start of Tuesday's session, with market participants closely tracking developments in oil prices, currency markets and global interest-rate expectations. (ANI)