Mumbai, October 12 (Daily Kiran) : The Indian stock market opened on a positive note on Monday, buoyed by strong performance in Asian markets and a decline in crude oil prices. The Sensex rose by 298.99 points, or 0.41%, to open at 72,771.32, while the Nifty 50 climbed 72.75 points, or 0.32%, to reach 22,593.20.
During the trading session, the Sensex peaked at 72,884.25, a gain of 411.92 points, or 0.56%. The Nifty 50 also hit a high of 22,651.10, reflecting an increase of 130.65 points, or 0.58%.
Overall market performance outpaced the major benchmarks, with the Nifty Smallcap 100 index gaining 1.3% and the Nifty Midcap 100 index rising by over 0.40%. Sector-wise, indices such as Nifty Auto, Nifty Metals, Nifty Realty, Nifty Oil and Gas, and Nifty Pharma showed positive momentum. In contrast, the Nifty FMCG, Nifty IT, and Nifty PSU Bank indices faced selling pressure.
The Indian rupee strengthened against the US dollar, opening at 95.76, up by 97 paise from its previous close of 96.73.
Globally, Asian markets exhibited mixed trends, with South Korea’s Kospi and Kosdaq experiencing declines of up to 3%. The US stock market ended last week on a positive note, with all three major indices posting gains.
Crude oil prices also fell, with Brent crude trading below $103 per barrel. Market experts suggest that while domestic factors are positive, global challenges, including high US bond yields and crude oil prices, remain a concern.
Analysts believe that foreign institutional investors (FIIs) may continue to sell in the short term, while domestic institutional investors (DIIs) are likely to balance this selling pressure. However, strong fundamentals, such as a projected GDP growth of 7.1% for FY 2027 and improved corporate profits, are supporting the market.
Experts indicate that in this environment, investors might overlook market volatility and continue to invest in well-valued growth stocks. Current market conditions present good buying opportunities for long-term investors.
They also note that a significant drop in crude oil prices due to positive developments in West Asia could lead to a stronger market rally from current levels.
Technical analysts point out that Friday’s recovery and chart patterns suggest potential gains in the range of 22,800 to 23,200. However, if the Nifty fails to close above 22,575, bearish sentiment may persist, with 22,295 identified as a key support level.
Meanwhile, investors in Asian markets remain cautious, focusing on the upcoming corporate earnings season, which could test the high valuations of tech companies. The recent easing of crude oil prices, following agreements to halt attacks on energy infrastructure, has alleviated some supply concerns, putting downward pressure on oil prices.
Overall, the market’s direction will likely continue to depend on global signals, crude oil movements, US bond yields, and activities of foreign investors.
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