Mumbai (Maharashtra) [India], August 24 (ANI): The Indian equity markets started the week on a positive note, tracking positive global cues. Both the benchmark indices opened with a gap-up; Sensex up over 200 points while Nifty was hovering around 24,300 level amid easing oil prices.
Sensex opened at 77,629.56 against previous close of 77,540.83 and was trading at around 77,774.29, up 233.46 points or 0.30 per cent, at the time of reporting. Nifty opened at 24,285.05 against the previous close of 24,252 and was trading at around 24,300 at the time of reporting.
All broad market indices traded in the green; sectorally, most indices traded in the green while auto, pharma, FMCG, PSU Bank, healthcare, consumer durables, and cement were under pressure.
Oil prices corrected on Monday amid profit booking ahead of an expected US announcement on additional sanctions against Iran. At the time of reporting, Brent crude was trading at around USD 93.07 per barrel while crude oil was trading at around USD 85.69 per barrel.
On BSE, Infosys, HCL Tech, Tata Steel, HDFC Bank, Tech Mahindra, Indi Go, TCS, Kotak Bank, ICICI Bank, Hindustan Unilever, NTPC among others were the top gainers. Asian Paint, Titan, Bharti Airtel, Trent, Power Grid among others were the major losers.
Likewise, on NSE, Infosys, Hindalco, HCL Tech, Wipro, SBI Life, Indi Go, ONGC, M&M among others were the top gainers while Cipla, Trent, Titan, BEL, Bajaj Finance among others were the top losers during the early morning trade.
Market and banking expert Ajay Bagga noted, "Global markets enter the week of August 24 under heavy macro and geopolitical crosscurrents, marked by sharp friction between escalating Middle Eastern conflict and high-stakes tech earnings. The economic backdrop is dominated by Washington's declaration of an "economic D-Day" against Iran--a blitz of secondary sanctions and naval enforcement designed to isolate Tehran and reopen the blocked Strait of Hormuz."
According to Bagga, the monthly expiry of Indian index futures and options on Tuesday will see close scrutiny of the recently introduced CAS framework , which saw two firms being sanctioned by SEBI for manipulation of Sensex expiries already.
Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities noted, Brent is trading just below USD 94 after a second consecutive weekly gain of around 6%, and the market's entire focus today is on Washington, which is due to announce the details of what Trump has called an 'economic D-Day' -- a fresh package of measures to isolate Iran's economy that could also affect countries that continue to trade with Tehran, including China, the largest buyer of Iranian crude.
On rupee, Banerjee noted, the currency remains on a weakening path as long as oil holds above USD 90 and the dollar demand from importers stays elevated. "We expect it to move into a 96.20 to 97.00 range in the near term, though the substantial reserves the RBI has built through the special deposit schemes give it every means to keep the currency's adjustment orderly," he said.
According to market analyst Vipin Dixena, while the market has opened on a positive note, the early price action suggests that buyers are yet to establish strong control. this is a cautious recovery rather than a confirmed reversal.
The market has already seen two consecutive weeks of losses, while elevated crude prices and geopolitical uncertainty continue to remain overhangs. At the same time, the recent improvement in domestic buying provides some cushion to the downside, as per Dixena.
"Technically, 24,300 is the immediate level I am watching on Nifty. If the index sustains above this level, the recovery can extend towards 24,400-24,500. On the downside, 24,200 remains the immediate support, and a break below this level could bring selling pressure back," he said. (ANI)
Indian equities open higher tracking global cues; Sensex gains over 200 points, Nifty hovers around 24,300
