Benchmark indices opened higher on Monday, with IT stocks doing much of the heavy lifting, while elevated crude oil prices and geopolitical tensions kept gains in check.
The BSE Sensex was up 206.06 points, or 0.27%, at 77,746.89 around 9:26 am. The index opened at 77,629.56 and touched an early high of 77,789.40. The Nifty 50 rose 43.40 points, or 0.18%, to 24,295.40 after opening at 24,285.05.
IT stocks led the gains in the Sensex pack. Infosys was the top gainer, adding 1.85%, followed by HCL Technologies, which gained 1.14%. Tata Steel rose 1.12%, while HDFC Bank, Tech Mahindra and TCS added 0.68%, 0.63% and 0.61%, respectively.
IndiGo, Kotak Mahindra Bank, ICICI Bank, Hindustan Unilever, Ultratech Cement and NTPC were also trading higher.
On the other side, Asian Paints fell 0.42%, making it the biggest loser among Sensex stocks. Titan declined 0.36%, while BEL, Adani Ports and Bharti Airtel fell 0.29%, 0.27% and 0.21%, respectively. Bajaj Finserv, Bajaj Finance, Sun Pharma, Eternal, Power Grid and M&M were also in the red.
BROADER MARKET OPENS HIGHER
The broader market was largely positive in early trade. Nifty 100 added 0.02%, Nifty 200 gained 0.03% and Nifty 500 rose 0.07%. Nifty Midcap 50 added 0.11%, while Nifty Midcap 100 gained 0.10%.
The Nifty Smallcap 100 was the strongest performer, rising 0.69%. India VIX, however, climbed 4.09%, indicating some increase in market volatility.
Sectoral indices were mixed. Nifty Private Bank gained 0.51%, Nifty Realty added 0.40% and Nifty Financial Services 25/50 rose 0.23%. Nifty Midcap Financial Services gained 0.61%, while Nifty Consumer Durables added 0.19%.
Nifty FMCG was among the biggest drags, falling 0.74%. Nifty Auto declined 0.60%, Nifty Media fell 0.54% and Nifty IT slipped 0.46%. Nifty Pharma and Nifty Healthcare also traded lower.
CRUDE, GEOPOLITICAL RISKS KEEP GAINS IN CHECK
Crude oil remained a key concern for investors. Brent crude was trading at $93.13 a barrel, while WTI crude stood at $85.69. Although both were lower in early trade, Brent remained elevated amid continuing geopolitical uncertainty.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the Nifty is likely to move within the 24,200-24,600 range in the near term.
He said the market has fundamental support from India’s resilient economy and improving earnings growth. However, a sustained breakout above 24,600 could be difficult because of elevated crude prices and geopolitical tensions linked to the West Asian crisis and the Russia-Ukraine war.
“In this context any rally will be met with increased selling at higher levels,” Vijayakumar said.
He also said investors should look beyond the Nifty as there is strong activity in the broader market. Companies reporting good results and positive forward guidance are attracting both retail and institutional investors, even at high valuations.
Segments such as CDMO, healthcare, precision engineering and power infrastructure are attracting investor interest, he said, while cautioning investors not to rush into stocks at any price as valuations remain important.
