Sensex, Nifty open higher as crude stays near $105; banks, financials lead gains
The BSE Sensex was up 336.46 points at 75,519.82 around 9:26 am, while the NSE Nifty50 gained 86.30 points to trade at 23,741.00.
Benchmark stock market indices opened higher on Friday as investors tracked crude oil prices and developments in the ongoing US-Iran talks, while banking and financial stocks led gains in early trade.
The BSE Sensex was up 336.46 points at 75,519.82 around 9:26 am, while the NSE Nifty50 gained 86.30 points to trade at 23,741.00.
Markets opened with positive momentum after global crude oil prices remained below the $105-per-barrel mark despite continuing tensions in West Asia.
As of around 9:25 am, Brent crude was trading at $104.25 per barrel, up 1.63%, WTI crude stood at $97.44 per barrel, up 1.13%
OIL, IRAN TALKS REMAIN IN FOCUS
Investors are closely watching developments in the US-Iran peace discussions, which continue to influence global oil prices and market sentiment.
The two sides remained divided on issues related to Iran’s uranium stockpile and control over the Strait of Hormuz, although US Secretary of State Marco Rubio said there had been “some good signs” in the negotiations.
The Iran conflict has remained one of the biggest triggers for global markets over the past few months, especially for oil-importing countries like India.
BANKING SHARES LEAD MARKET GAINS
Most major sectors traded in the green during early trade.
Nifty Financial Services rose 0.76%, while Nifty Private Bank gained 0.93% and PSU Bank index climbed 0.47%.
Among Sensex stocks:
ICICI Bank rose 1.29%
HDFC Bank gained 1%
Kotak Mahindra Bank climbed 0.92%
Bajaj Finance added 0.51%
IndiGo shares also rose more than 0.8%, while UltraTech Cement, Asian Paints and Axis Bank traded higher.
However, IT stocks remained under pressure, with Tech Mahindra, Infosys and TCS slipping in early trade.
SMALLCAPS, MIDCAPS SEE BUYING INTEREST
Broader markets also showed positive momentum.
The Nifty Midcap100 index was up 0.06%, while the Nifty Smallcap100 index traded 0.12% lower after a strong recent rally.
Among sectoral indices Nifty Auto rose 0.29%, Nifty Metal gained 0.24%, Nifty Consumer Durables added 0.33%.
Meanwhile Nifty IT slipped 0.58%, Nifty Media declined 1.11%, Nifty Realty fell 0.88%.
India VIX, often called the market’s fear gauge, rose 4.05% to 18.55, indicating continued volatility concerns among traders.
RUPEE, CRUDE OFFER SOME RELIEF
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the recent trend in markets suggests investors are buying on dips and selling on rallies.
“An important recent trend in the market is buy on dips and sell on rallies. Low openings are bought into and high openings are getting sold,” he said.
He added that lower crude oil prices and a stronger rupee were positive signals for markets.
“Brent crude declining to below $105 and rupee appreciating to 96.20 from 96.96 level are positive developments,” Vijayakumar said.
According to him, strong quarterly earnings from small and midcap companies are supporting broader market sentiment.
“Small and midcaps coming out with good results and optimistic growth projections are getting positive response from the market,” he added.
However, he warned that continued foreign investor selling remains a concern for large-cap stocks.
“FII selling and fears of more FII selling are weighing on largecaps despite their relatively cheaper valuations,” he said.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)