Sensex, Nifty open flat on 28 July as chip selloff hits Asian markets
Synopsis
A blockbuster Chinese chipmaker debut sent shockwaves through global semiconductor stocks, dragging Asian indices sharply lower — South Korea's KOSPI slumped nearly 10%. Indian markets opened nearly flat, but the divergence is telling: IT stocks surged 2% even as the global chip trade unravelled, signalling that India's IT sector may be seen as a beneficiary rather than a casualty of the CXMT disruption.
Key Takeaways
Sensex opened at 76,831.75 , down 4 points , and Nifty50 at 23,971.25 , down 24.70 points on 28 July .
Nifty IT surged 2% in early trade, bucking the weak global trend.
China's ChangXin Memory Technologies (CXMT) debut triggered a global chip selloff; South Korea's KOSPI slumped nearly 10% and Japan's Nikkei fell over 4% .
Nifty snapped a five-session losing streak on Monday, rebounding over 400 points from Friday's low of 23,606 .
Key technical levels: support at 23,800 ; a close above 24,200 needed to confirm bullish momentum.
Brent crude fell 1.62% to $86.50/barrel ; WTI dropped 1.68% to $80.64/barrel .
The BSE Sensex and NSE Nifty50 opened nearly flat on Tuesday, 28 July, as weak cues from Asian markets — triggered by a broad-based selloff in global semiconductor stocks — kept domestic investors on edge. Despite the cautious open, select sectors held firm, with IT stocks emerging as an early bright spot.
Opening Numbers
The Sensex opened at 76,831.75, down just 4 points or 0.01%, while the Nifty50 started the session at 23,971.25, slipping 24.70 points or 0.10%. The muted open reflected a broader hesitation among traders unwilling to take fresh positions amid global uncertainty.
Sectoral Snapshot: IT Gains, Energy Drags
Nifty IT surged 2% in early trade, leading sectoral gainers, while Nifty MidSmall IT & Telecom advanced 1%. Realty, healthcare, and pharma stocks also traded in positive territory. On the losing side, Nifty Oil & Gas fell 0.30% and Nifty PSU Bank slipped 0.26%, reflecting pressure from declining crude prices and cautious macro sentiment.
What Spooked Global Markets
The primary trigger was the high-profile debut of China's ChangXin Memory Technologies (CXMT), which rattled global chip stocks by stoking fears of intensifying competition in the memory semiconductor industry. The ripple effect was felt sharply across Asia — Japan's Nikkei tumbled more than 4%, South Korea's KOSPI slumped nearly 10%, and Hong Kong's Hang Seng traded flat. Overnight on Wall Street, the Dow Jones gained 0.5%, the S&P 500 was largely unchanged, and the Nasdaq Composite slipped 0.2% as semiconductor losses weighed on technology shares.
Nifty Technical Levels to Watch
According to market analysts, the Nifty snapped a five-session losing streak on Monday, rising 228 points to close at 23,995. From Friday's intraday low of 23,606, the index has rebounded more than 400 points. Analysts note that 23,606 remains a critical support level, coinciding with the rising trendline connecting the April swing low of 22,182 and the June swing low of 23,070. A decisive close above 24,200 would be needed to confirm bullish momentum, while immediate support is seen around 23,800.
Oil Prices Add to Pressure
Falling crude prices added a further layer of caution. International benchmark Brent crude declined 1.62% to $86.50 per barrel, while US West Texas Intermediate (WTI) dropped 1.68% to $80.64 per barrel. Lower oil typically benefits India as an import-dependent economy, but the simultaneous global risk-off mood offset any near-term optimism.
With Asian markets under pressure and global chip stocks in flux, Indian equities are likely to stay range-bound in the near term. The next decisive move will hinge on how global semiconductor sentiment evolves and whether the Nifty can sustain above the 23,800 support zone.
Point of View
FII flows into Indian equities could turn defensive. The Nifty's technical recovery from 23,606 is encouraging, but a five-session losing streak does not reverse on a single bounce. Until 24,200 is decisively cleared, the recovery remains fragile.
NationPress
28 Jul 2026
Frequently Asked Questions
Why did Sensex and Nifty open flat on 28 July?
Both indices opened nearly flat on 28 July due to weak Asian market cues following a sharp global selloff in semiconductor stocks, triggered by the debut of China's ChangXin Memory Technologies. Sensex opened at 76,831.75, down 4 points, while Nifty started at 23,971.25, down 24.70 points.
What caused the global chip stock selloff?
The selloff was triggered by the blockbuster market debut of China's ChangXin Memory Technologies (CXMT), which raised concerns about intensifying competition in the global memory chip industry. The impact was most severe in South Korea, where the KOSPI slumped nearly 10%.
Which sectors gained and which fell in early trade?
Nifty IT led gains, surging 2%, with Nifty MidSmall IT and Telecom rising 1%. Realty, healthcare, and pharma also traded higher. On the losing side, Nifty Oil and Gas fell 0.30% and Nifty PSU Bank slipped 0.26%.
What are the key technical levels for Nifty?
Market analysts identify 23,606 as a critical support, coinciding with the rising trendline from the April low of 22,182 and June low of 23,070. Immediate support is seen at 23,800, while a close above 24,200 is needed to confirm a sustained bullish move.
How did Asian and US markets perform overnight?
Japan's Nikkei fell more than 4%, South Korea's KOSPI slumped nearly 10%, and Hong Kong's Hang Seng was flat. On Wall Street, the Dow Jones gained 0.5%, the S&P 500 was largely unchanged, and the Nasdaq slipped 0.2% on semiconductor weakness.
