Indian benchmark indices opened firmly higher on Monday, tracking upbeat global cues after crude oil prices tumbled amid easing geopolitical tensions in West Asia. Positive signals from GIFT Nifty and gains across Asian markets also supported investor sentiment at the opening bell.
The BSE Sensex rang the opening bell around 76,650, soaring close to 600 points, while the NSE Nifty50 started trading near 23,950, rising more than 150 points, as of 9:15 AM.
GIFT Nifty Signals Positive Start
Indian equities began the week on a stronger footing after GIFT Nifty traded at 23,931, up 124 points, indicating a positive opening for benchmark indices.
At around 9:00 AM, the Sensex was trading at 76,530.15, up 470.38 points or 0.62 per cent, while the Nifty gained 57.80 points, or 0.24 per cent, to 23,825.25.
The rebound comes after a volatile previous week, when domestic markets witnessed broad-based selling pressure amid geopolitical uncertainty and profit booking across key sectors.
Investor sentiment improved following a sharp decline in crude oil prices after the United States and Iran paused military strikes, raising hopes that diplomatic efforts could help ease tensions in the region.
Asian Markets Advance As Oil Prices Slide
Most Asian markets traded higher on Monday, supported by easing energy prices and improved risk appetite.
Japan’s Nikkei 225 gained 0.35 per cent, while Hong Kong’s Hang Seng advanced 0.58 per cent in early trade as investors welcomed signs of de-escalation in the West Asia.
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Wall Street Ends Mixed
US markets delivered a mixed performance on Friday.
The Dow Jones Industrial Average rose 0.46 per cent, while the S&P 500 added 0.05 per cent. However, the technology-heavy Nasdaq Composite slipped 0.64 per cent.
Crude Oil Falls Sharply After Pause In Hostilities
Oil prices witnessed a steep correction after reports that the United States and Iran had paused military action following nearly two weeks of hostilities.
Brent crude dropped as much as 7.44 per cent during the session to an intraday low of $89.58 per barrel. Meanwhile, the July Brent futures contract traded at $92.44 per barrel, down 4.28 per cent on the Intercontinental Exchange.
The sharp fall in crude prices offered relief to markets, as lower energy costs could help ease inflationary pressures and improve India’s macroeconomic outlook.
Gold And Silver Trade Higher
Despite the decline in crude oil, investors continued to seek safety in precious metals.
Gold futures were trading 0.88 per cent higher, while silver futures advanced 1.88 per cent in early trade.
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Analysts Advise Caution Despite Positive Opening
Market experts believe the recovery at the open should be viewed cautiously, as the broader market structure remains fragile after last week’s sharp correction.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the benchmark indices witnessed significant profit booking during the previous week, with the Nifty falling 2.33 per cent and the Sensex shedding more than 2,000 points. Private banks and realty stocks were among the worst performers, while FMCG emerged as the only major sector to register gains.
According to Chouhan, the Nifty has slipped below its 20-day simple moving average, signalling continued weakness in the near term. He noted that the 50-day moving average near 23,850 on the Nifty and around 76,200 on the Sensex will remain important resistance levels.
“As long as the indices remain below these levels, market sentiment is likely to stay cautious,” he said.
He added that a sustained move above these resistance levels could trigger a recovery towards the 24,000-24,100 zone on the Nifty, while a break below the 23,600-23,550 range could intensify selling pressure.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
