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Market Opens in Green: Sensex Rises 47 Points, Nifty At 24,250; Crude Oil, Global Yields In Focus
At 9:16 am, the BSE Sensex was at 77,584.74, up 47 points, or 0.06 per cent, while the NSE Nifty was trading at 24,249.75, up 17.90 points, or 0.07 per cent.
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The domestic equity markets opened marginally higher on Friday, but gains remained limited as elevated crude oil prices, rising US bond yields and renewed geopolitical tensions kept investors cautious. The recovery follows Thursday’s strong rebound, when the Sensex jumped 628 points and the Nifty snapped a seven-session losing streak.
At 9:16 am, the BSE Sensex was at 77,584.74, up 47 points, or 0.06 per cent, while the NSE Nifty was trading at 24,249.75, up 17.90 points, or 0.07 per cent.
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The broader market was relatively stronger, with the Nifty Smallcap 50 rising 0.64 per cent and the Nifty Smallcap 100 gaining 0.55 per cent. The Nifty Smallcap 250 was up 0.32 per cent, while the Nifty Midcap 100 advanced 0.07 per cent.
Among sectors, Nifty Realty was the top gainer, rising 0.68 per cent, followed by pharma at 0.38 per cent and metal at 0.36 per cent. Healthcare, private banks and auto stocks also traded higher. On the other hand, the Nifty IT index fell 0.44 per cent, while FMCG, cement and PSU banks remained under pressure.
Global cues remain cautious
Asian markets were largely subdued as investors continued to track the rise in global bond yields and higher oil prices. The Nikkei was down around 0.8 per cent, while concerns over geopolitical tensions in the Gulf added to uncertainty.
US Treasury yields resumed their climb after a brief relief following a surprise intervention by the US Treasury. The 10-year Treasury yield rose to around 4.71 per cent, while the 30-year yield moved back towards 5.25 per cent. Higher bond yields can weigh on equity valuations by increasing borrowing costs and reducing the relative attractiveness of stocks.
Oil prices remained a major concern for Indian markets. Brent crude had climbed to a one-month high of $94.71 a barrel amid growing concerns over tensions involving Iran and the Strait of Hormuz. US West Texas Intermediate crude was around $86.18 a barrel. Higher crude prices are a concern for India because the country imports a large share of its oil requirement.
Gold, meanwhile, remained above the $4,500-an-ounce level as investors continued to seek safe-haven assets amid uncertainty over US policy, global debt and geopolitical tensions.
Nifty outlook
According to Ponmudi R, CEO of Enrich Money, the Indian market is likely to remain cautious and range-bound despite Thursday’s recovery. “Nifty 50 is likely to maintain a range-bound bias after snapping its seven-session losing streak. However, the index remains below its key short-term moving averages, suggesting that stronger follow-through buying is still required to confirm a sustained reversal,” Ponmudi said.
He identified 24,200-24,300 as the immediate resistance zone for the Nifty. A sustained move above 24,400 could strengthen the recovery and push the index towards 24,500 and higher levels.
On the downside, 24,100-24,150 remains the immediate support zone, followed by the crucial 24,000 mark. “A decisive break below 24,000 could revive the short-term bearish structure and expose the index to lower support levels,” Ponmudi said.
He added that the near-term outlook remains cautious to range-bound. As long as 24,000 holds, recovery attempts may continue, but failure to cross the key resistance zone could keep the market vulnerable to profit booking.
Sensex, Nifty rebound after seven-day losing streak
Indian benchmark indices staged a strong recovery on Thursday, with the Sensex gaining 628.04 points, or 0.82 per cent, to close at 77,537.72. The index had risen as much as 701 points during the session.
The Nifty 50 climbed 153.55 points, or 0.64 per cent, to settle at 24,231.85, snapping a seven-session losing streak. The rebound was supported by easing global bond yields and fresh foreign fund inflows.
However, with crude oil prices rising again and global bond yields remaining elevated, investors are likely to remain cautious as the market looks for stronger buying support to extend the recovery.
Key Questions Answered
Ask News18The Indian market is likely to remain cautious and range-bound despite recent recovery. While recovery attempts may continue if the Nifty 50 holds above 24,000, failure to cross key resistance could leave the market vulnerable to profit booking. Elevated crude oil prices and global bond yields are expected to keep investors cautious.
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Original source: https://www.news18.com/business/markets/
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