Mumbai, June 1: On the first trading day of the week, the Indian stock market opened positively, buoyed by mixed signals from global markets amid ongoing conflicts in West Asia. The benchmark indices, Sensex and Nifty 50, showed gains as investors awaited developments regarding a potential trade agreement between the U.S. and Iran.
As of 9:19 AM, the 30-share BSE Sensex rose by 293.10 points, or 0.39%, reaching 75,076.56. Meanwhile, the Nifty 50 climbed by 99.65 points, or 0.42%, to hit 23,641.75.
In broader markets, the Nifty Midcap and Nifty Smallcap indices recorded increases of 0.52% and 0.68%, respectively.
Sector-wise, the Nifty IT and Nifty Media indices saw positive movement, while Nifty FMCG, Nifty Auto, and Nifty Healthcare lagged behind.
Among the Nifty 50 stocks, InterGlobe Aviation, Asian Paints, Infosys, Tech Mahindra, TCS, HCL Tech, and Wipro reported the most significant gains.
A market expert noted that crude oil prices have rebounded from recent lows. Currently, Brent crude is trading in the range of $89-90 per barrel. Although this level is below the highs seen at the start of the month, the recent uptick indicates that the market remains cautious about the outcomes of U.S.-Iran negotiations. Investors are wary that any disruptions in talks could impact global energy supplies and maritime trade routes.
The expert added that market attention will also be on the activities of Foreign Institutional Investors (FIIs). In recent trading sessions, foreign investors have been consistently selling, reflecting their caution towards emerging markets. The ongoing outflow of foreign capital has been a significant factor limiting the bullish momentum in Indian markets. However, strong participation from domestic investors is providing some support, though substantial gains seem limited without an improvement in foreign investment flows.
News related to U.S.-Iran talks, geopolitical developments in West Asia, crude oil prices, currency movements, and foreign investor sentiment could shape the market’s direction in the coming days. Until global conditions stabilize, volatility is expected to persist.
According to experts, technically, the Nifty 50 appears to be under pressure. Continuous selling at higher levels and a lack of strong buying are keeping the market within a limited range. Currently, the immediate resistance for Nifty is seen between 23,750 and 23,800. Above this, the 24,000 to 24,100 range is viewed as a crucial resistance level.
If the Nifty manages to hold above these levels, a new bullish phase could emerge, potentially pushing the index to levels between 24,200 and 24,400. Conversely, the nearest support is at 23,500, while the 23,300 to 23,000 range provides a strong foundation. Should the Nifty slip below these support levels, additional pressure on the market could ensue.
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