New Delhi: Indian stock markets opened with modest gains on Monday as investors tracked mixed signals from global markets. The Sensex started the session in the green while the Nifty remained almost unchanged.
The BSE Sensex opened at 74,849.30, rising 120.03 points or 0.16%. The NSE Nifty began trading at 23,150.85, up 4.70 points or 0.02%.
Banking stocks showed mixed trends. The Nifty PSU Bank index gained more than 1% to lead sectoral gains. The Nifty Oil and Gas index also rose by 0.6%.
Private banking, IT and chemical stocks came under pressure. The Nifty Private Bank, Nifty IT and Nifty Chemicals indices fell by up to 1%. Axis Bank shares dropped more than 3% in early trade.
Crude Oil Prices Remain a Concern
Market experts said last week’s gains could help support trading. The Nifty had risen 2.8% during the previous week. Better-than-expected IT earnings and strong results from major banks could also support market sentiment.
However, tensions around the Strait of Hormuz and high crude oil prices remain concerns for investors. Brent crude had recently climbed to around $109 per barrel, raising worries about the impact on the Indian economy.
Experts said rising crude prices could limit foreign investor interest despite attractive valuations in large-cap stocks and a stronger rupee. Large-cap shares are also expected to perform better than mid-cap and small-cap stocks, with company-specific movements likely as firms announce their second-quarter results.
For the Nifty, immediate support is placed between 22,950 and 23,000. Resistance is seen in the 23,250–23,300 range. The Relative Strength Index (RSI) stood at 52.81, above its average of 34.70. The put-call ratio (PCR) was at 1.08.
Foreign Investors Return to Buying
Trading data from October 16 showed that foreign institutional investors (FIIs) turned net buyers after selling shares for 15 consecutive sessions. They purchased equities worth around Rs 1,166 crore.
Domestic institutional investors (DIIs), meanwhile, ended their 45-session buying streak with net sales of about Rs 3,661 crore.
In commodity markets, Brent crude was trading nearly 2% lower at around $107.76 per barrel. US West Texas Intermediate (WTI) crude fell about 1% to $100.43 per barrel.
Asian markets were mixed on Monday. Japan’s Nikkei fell 0.84%, while Hong Kong’s Hang Seng and South Korea’s KOSPI gained up to 0.83%. Indonesia’s Jakarta Composite declined by more than 5%.