The Nifty and Sensex opened lower, reflecting market nervousness ahead of the election results set to be announced on June 4. Selling pressure was seen across the board, with broader indices and all 13 major sectoral indices in the red.

"It's a healthy correction that we are seeing in the market ahead of election results. The monthly expiry could also be leading traders to trim their positions. However, the overall tone of the market is positive and won't see a reversal in gains as long as Nifty stays above 22,500," said Ajit Mishra, SVP Research, Religare Broking.

At 9.15 am, the Sensex was down 237 points or 0.3 percent at 74,932 and the Nifty 50 was down 76 points at 22,812. About 997 shares advanced, 1,177 shares declined, and 118 shares were unchanged.

Oil and gas, auto, and financial services sectors dragged the Nifty lower. Key individual stocks contributing to the decline included HDFC Bank, ICICI Bank, and Mahindra & Mahindra. On the other hand, Bharti Airtel, ITC, and Hindalco were the top positive contributors to the Nifty.

Aster DM Healthcare shares slumped 7.5 percent after the company reported a net loss for the January-March quarter of FY24. Paytm shares hit a 5 percent upper circuit in early trade on a media report saying that Adani is in talks to acquire a stake in the company.

While shares of DOMS Industries rallied over 10 percent on an upbeat Q4 FY24 performance, Brigade Enterprises shares surged 5 percent after reporting a 3x jump in net profit for the quarter ended March.

While global indices provided mixed signals, analysts believe they are not significantly influencing market movements at the moment. Instead, domestic factors, particularly the general elections, are currently driving the market.

India VIX, a measure of market volatility, has surged from 10 to 24 over the past month amid election-related nervousness. Today, India VIX was down 2 percent at 23.7. Analysts believe that India VIX has more room to grow, noting that it reached nearly 30 during the 2019 general elections.

Volatility is likely to spike as we reach the exit poll (Jun 1), and hence, one must refrain from being aggressive, said Sameet Chavan, Head of Technical and Derivative Research at Angel One.

According to Mishra, the broader indices are showing signs of fatigue, with market breadth posing a challenge. He advised traders to refrain from taking aggressive long positions in broader indices and suggested considering booking profits in sectors like railways and power, which have performed well recently.

Mishra said that crude oil remains a focal point for analysts, with expectations that OPEC will maintain supply curbs during its meeting on June 2. Analysts and traders anticipate voluntary production cuts of 2.2 million barrels per day. Brent crude snapped a three-day gaining streak and was down 0.2 percent at $84.14 per barrel. Meanwhile, WTI crude rose for the fifth session to $80 per barrel.

Investors await the upcoming US core personal consumption expenditures (PCE) price index, a key inflation gauge for the Federal Reserve, which is due on May 31.