Sensex Rises 329 Points, Nifty Gains 0.5% as Easing Crude Supports Sentiment
Indian equity benchmarks Sensex and Nifty gained significantly at the open on Monday, supported by falling crude oil prices despite global risks.
Indian equity markets kicked off the trading week on a positive note on Monday, with both the Sensex and Nifty 50 posting significant gains at the opening bell. The upward movement was primarily fueled by a cooling in global crude oil prices, which provided much-needed relief to investor sentiment.
Market Opening Figures
The Sensex surged by 329.31 points, or 0.45 per cent, to reach 72,801.64. It had opened at 72,771.32, marking a jump of 298.99 points from its previous Friday close of 72,472.33. Similarly, the Nifty 50 climbed 113.30 points, or 0.50 per cent, to stand at 22,633.75, after opening at 22,593.20.
The rally comes on the heels of a recovery on Friday, but experts warn that the market remains at a delicate crossroads. While the drop in Brent crude—which fell 1.53 per cent to trade at USD 103.12 a barrel—is a major tailwind, other global pressures continue to loom large.
Expert Views: A Fragile Recovery?
Market analyst Vipin Dixena noted that while the easing crude prices and the RBI's efforts to stabilize the rupee are helping, the broader market structure remains fragile. He emphasized that a single positive session is not enough to confirm a permanent trend reversal, especially with persistent selling by foreign institutional investors (FIIs) acting as a significant headwind.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, echoed these concerns, stating that external headwinds are currently dominating domestic positives. He pointed out that:
- High US bond yields and elevated crude prices continue to weigh on the market.
- FII selling is expected to persist in the near term.
- Domestic institutional investors are likely to absorb the selling pressure.
However, Vijayakumar suggested that the recent correction has made valuations more attractive in several segments, supported by a projected GDP growth of 7.1 per cent for FY27 and improving corporate profitability.
Sectoral Performance and Stock Movers
The gains were spread across various sectors, though the momentum was uneven. The Nifty Auto index rose by 0.93 per cent, followed by Nifty Realty (+0.81%), Nifty Metal (+0.66%), and Nifty IT (+0.64%).
Top Gainers and Losers
Among the heavyweights in the Nifty 50, the following stocks saw significant movement:
- Bajaj Auto: Led the pack with a 1.77 per cent rise.
- HCL Technologies: Gained 1.26 per cent.
- Bharat Electronics: Advanced by 1.24 per cent.
- Other Gainers: Jio Financial Services and IndiGo also saw upward movement.
On the flip side, Tech Mahindra faced a sharp decline of 2.15 per cent. Other stocks that saw marginal losses included ITC (-0.34%), while SBI, Axis Bank, and Bharti Airtel each slipped by 0.09 per cent.
Technical Outlook and Global Context
Technical analyst Hemang Gor of Axis Direct suggested that the Nifty's undertone remains fragile if it stays below the 22,580 mark. He identified key resistance levels at 22,800 and 22,900, with immediate support positioned at 22,300. A break below this support could potentially push the index toward 22,150.
In the global arena, Asian markets showed a mixed performance. While Singapore’s Straits Times rose by 0.43%, South Korea’s Kospi fell by 2.87% and Taiwan Weighted declined by 0.30%. Japan’s Nikkei 225 was closed for Sports Day.