Mumbai: The Sensex and Nifty started Thursday’s trading session with small gains. However, the rise came against a mixed picture in global markets, while crude oil prices remained high.
At 9.25 am, the Sensex was trading at 73,414, up 168 points or 0.23 per cent. The Nifty stood at 22,744, gaining 45 points or 0.20 per cent.
The broader market also opened in positive territory. The Nifty Midcap 100 rose 0.25 per cent, while the Nifty Smallcap 100 gained 0.13 per cent.
IT Stocks Lead Early Gains
IT stocks were among the main gainers in early trade. The Nifty IT index rose 0.80 per cent, while the pharma index gained 0.30 per cent.
The mood was weaker in some other sectors. The Nifty Private Bank index fell 0.18 per cent and the media index dropped 0.16 per cent.
Market gains could remain limited unless the Nifty moves decisively above 22,800, an analyst said. High crude oil prices, US bond yields and the Federal Reserve’s latest policy message continue to weigh on investor sentiment.
Crude Oil and US Bond Yields Keep Investors Cautious
Brent crude was trading near $114.50 a barrel amid continuing geopolitical uncertainty. High oil prices remain a concern for India, as they keep energy costs elevated and put pressure on sectors sensitive to crude prices.
The US Federal Reserve kept interest rates unchanged, but two members voted in favour of a rate increase. Markets have also raised their expectations of another hike in December.
The US 10-year Treasury yield was around 5.02 per cent. This suggests that the Fed’s decision to hold rates has not eased global financial conditions significantly.
High US yields could also affect foreign investment in Indian equities. If yields do not fall from their recent levels, dollar-based investments may continue to attract money that might otherwise flow into emerging markets, market participants said.
Nifty and Bank Nifty Levels to Watch
In the previous trading session, the Nifty closed at 22,698, down 0.22 per cent. An attempted recovery lost momentum as investors booked profits.
The index has immediate support between 22,600 and 22,650. On the upside, resistance is seen in the 22,850–22,900 range.
The Bank Nifty ended the previous session at 54,267, gaining 0.54 per cent. Its immediate support lies between 53,800 and 54,000, while resistance is placed at 54,600–54,800.
Asian Markets Trade Mixed, US Indices Close Higher
Asian markets were mixed on Thursday. China’s Shanghai index fell 0.82 per cent, while the Shenzhen index dropped 2.48 per cent. South Korea’s Kospi declined 2.72 per cent.
Japan’s Nikkei moved in the opposite direction, rising 0.28 per cent. Hong Kong’s Hang Seng Index also edged up 0.06 per cent.
US markets closed higher overnight. The Nasdaq gained 0.27 per cent, the S&P 500 rose 0.28 per cent and the Dow Jones edged up 0.19 per cent.
FIIs and DIIs Remain Net Buyers
Foreign and domestic institutional investors both bought equities on October 28.
Foreign institutional investors (FIIs) were net buyers of shares worth Rs 872 crore. Domestic institutional investors (DIIs) purchased equities worth Rs 643 crore.