2 hrs ago
Indian Stocks Open Higher as Crude Prices Continue Falling
Indian stock markets started Monday with their main indexes higher.
The Sensex gained more than 400 points, and the Nifty also rose.
Realty and automobile companies helped lift the market.
Smaller-company indexes fell, showing that investors were still careful.
Oil prices dropped below $102 per barrel.
Cheaper oil can help India because it imports a lot of oil.
However, high US bond yields and international conflicts remained concerns.
Analysts said the market could rise further if oil prices keep falling.
They also said the Nifty must move above 23,400 to show stronger recovery.
The Sensex rose about 411–424 points, while the Nifty gained roughly 30–33 points in early trading.
Nifty Realty led sectoral gains, followed by automobile stocks, while IT and PSU bank shares declined.
Brent crude fell below $102 per barrel as oil flows through the Strait of Hormuz improved.
Broader markets remained weaker, with the Nifty Midcap 100 and Smallcap 100 both trading lower.
Foreign institutional investors bought ₹599 crore of Indian equities, while domestic institutions bought ₹1,019 crore on September 18.
- Who
- Indian equity investors, foreign and domestic institutions, and market analysts.
- What
- The Sensex and Nifty opened higher as falling crude prices supported buying, while broader markets and several sectors declined.
- Where
- Indian stock exchanges in Mumbai, including the Bombay Stock Exchange and National Stock Exchange of India.
- When
- Monday morning, with market levels reported around 9:20–9:27 a.m.; institutional flows cited were from September 18.
- Why
- Lower crude prices and stronger realty and automobile shares supported sentiment, although high US bond yields and geopolitical tensions limited gains.
Reasons for Further Gains
Reasons for Caution
Impact of crude prices
Reasons for Further Gains
Analysts viewed the sharp fall in crude prices as a major positive for Indian equities because cheaper imported oil can provide relief to the economy and markets.
Reasons for Caution
The benefit could weaken if crude prices rebound; a market analyst said the near-term direction may depend on whether the unwinding of the oil-price premium continues.
Market direction
Reasons for Further Gains
A sustained Nifty move above 23,400 could open the way toward 23,500–23,600, according to technical analysis cited in the reports.
Reasons for Caution
Until the 23,400–23,600 range is decisively reclaimed, the market should be considered in a recovery attempt rather than a confirmed reversal.
Global risks
Reasons for Further Gains
Asian equities and recent US market performance provided supportive signals, while expectations of economic growth and corporate earnings helped markets hold their ground.
Reasons for Caution
US 10-year bond yields near 5%, Middle East tensions, the Russia-Ukraine war, and possible renewed foreign selling remained risks for equities.
Key facts
- Sensex
- Around 9:20–9:27 a.m., it was up about 411–424 points, or 0.55%–0.57%, near 74,706–74,718.
- Nifty 50
- It gained about 30–33 points, or 0.13%–0.14%, to roughly 23,376–23,379.
- Leading sector
- Nifty Realty rose 1.04%; Nifty Auto gained 0.65%.
- Broader market
- Nifty Midcap 100 fell 0.19%, while Nifty Smallcap 100 declined 0.04%.
- Crude oil
- Brent crude fell below $102 per barrel, with one report citing approximately $101.61.
- Institutional flows
- On September 18, foreign institutional investors bought ₹599 crore and domestic institutional investors bought ₹1,019 crore of equities.
- Key Nifty levels
- Analysts identified support around 23,100–23,200 and resistance around 23,400–23,500; one analyst cited stronger support at 23,100–23,070 and an upside target of 23,500–23,600 after a sustained breakout.
Quotes
Anindya Banerjee
Kotak Securities analyst commenting on crude-price prospects
“The Indian market is starting the week on a cautious but relatively stable note. The biggest positive trigger for Indian market is the sharp cooling in crude. The interesting part is that the market is showing resilience despite the geopolitical uncertainty. If crude continues to cool and FII selling does not return aggressively, that can give domestic equities some breathing room.”
deccanchronicle.com
“The US 10-year bond yields are hovering around 5 per cent posing a threat to equity markets. But equity markets are holding their ground taking cues from the robust growth in developed economies and expectations of good corporate earnings. In India, too, this pattern is playing out.”
thehansindia.com
Sources
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