1 week ago
Indian Markets Open Higher Despite Elevated Crude Oil Prices
Indian stock markets started Friday higher for the second day in a row.
The Sensex and Nifty both gained at the opening.
Realty, metal and pharmaceutical companies helped lift the market.
Technology and automobile stocks moved lower.
Oil prices were still high, which can make investors nervous.
Higher US bond yields were another concern for the market.
Analysts said broader-market stocks could continue to perform well if investors keep buying.
They also said the market may move within a limited range while oil prices remain elevated.
Sensex opened 163.35 points higher at 77,701.07, while Nifty rose 52.20 points to 24,284.05.
Realty, metal and pharmaceutical stocks led early gains, with Nifty Realty rising 0.7%.
Nifty IT fell 0.6%, making it the weakest major sector in early trading.
Analysts warned that higher crude prices and US bond yields could limit the market recovery and prompt profit booking.
Brent crude traded at $93.96 per barrel amid concerns that possible Iran sanctions could disrupt supplies.
- Who
- Indian equity benchmarks, sectoral stocks and market analysts.
- What
- Indian markets opened higher for a second straight session after recent losses.
- Where
- Mumbai, India; Asian markets were also trading during the session.
- When
- Friday, at the market open.
- Why
- Gains in realty, metal and pharmaceutical stocks, along with institutional buying and improving fundamentals, supported the rise, while elevated crude prices and higher US bond yields posed risks.
Reasons for Continued Gains
Risks to the Recovery
Market momentum
Reasons for Continued Gains
Institutional buying, improving fundamentals and continued interest in broader-market stocks could support further gains.
Risks to the Recovery
Analysts said the previous session’s rally may struggle to continue and that the market could remain rangebound.
Sector performance
Reasons for Continued Gains
Realty, metals, pharmaceuticals, digital platforms, NBFCs and CDMO stocks were identified as areas attracting buying interest.
Risks to the Recovery
IT and auto stocks declined in early trade, while elevated valuations could limit gains in some favored sectors.
External pressures
Reasons for Continued Gains
The Nifty’s bullish Doji after seven sessions of declines suggested that selling pressure may be easing.
Risks to the Recovery
Brent crude approaching $94 per barrel and rising US Treasury yields could weigh on large-cap stocks and trigger profit booking.
Key facts
- Sensex opening
- 77,701.07, up 163.35 points or 0.21 per cent.
- Nifty opening
- 24,284.05, up 52.20 points or 0.22 per cent.
- Top sector gainer
- Nifty Realty, up 0.7 per cent in early trade.
- Weakest major sector
- Nifty IT, down 0.6 per cent in early trade.
- Brent crude price
- $93.96 per barrel.
- Technical support
- Analysts identified the Nifty support zone at 24,060-24,000.
- Technical targets
- Analysts cited possible moves toward 24,317-24,380 and then 24,400-24,545 if support holds.
Quotes
Market analysts
Financial market analysts
“Technically, Nifty formed a bullish Doji after seven consecutive sessions of decline, indicating easing selling pressure. The index could move towards 24,317-24,380 and subsequently 24,400-24,545, provided it sustains above the 24,060-24,000 support zone.”
thehansindia.com
Sources
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