Indian equity benchmarks opened the week on a strong note on Monday, supported by easing crude oil prices and optimism surrounding fresh diplomatic engagement between the United States and Iran. The gains came despite weakness across most Asian markets.
The BSE Sensex rang the opening bell near 78,650, climbing close to 550 points, while the NSE Nifty50 started trading around 24,550, soaring more than 150 points, as of 9:15 AM.
GIFT Nifty Signals Firm Start
The GIFT Nifty pointed to a positive opening for domestic equities, trading at 24,589, up 136 points in early deals.
At around 9:01 AM, the Sensex was trading 714.10 points, or 0.91 per cent, higher at 78,808.74, while the Nifty rose 120.40 points, or 0.49 per cent, to 24,504.00.
The upbeat start follows a strong rally last week, with investors taking comfort from improving global cues, lower oil prices and positive technical indicators.
Market sentiment improved after US President Donald Trump said negotiations with Tehran are set to begin on Monday, raising hopes of a diplomatic breakthrough and easing concerns over energy supplies through the Strait of Hormuz.
Oil Prices Decline On Diplomatic Optimism
Crude oil prices fell sharply after signs emerged that Washington and Tehran could resume negotiations.
Brent crude futures for the August contract dropped 4.81 per cent to $83.70 per barrel, as traders anticipated that a potential agreement could ease supply concerns in the region.
Lower crude prices are generally viewed as supportive for the Indian economy, helping reduce inflationary pressures, improve the current account balance and ease cost pressures for businesses.
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Asian Markets Trade Lower
Despite the positive sentiment in India, equity markets across the Asia-Pacific region remained under pressure.
South Korea’s Kospi led regional losses, falling more than 4 per cent, while Japan’s Nikkei 225 declined 1.84 per cent. Hong Kong’s Hang Seng also traded sharply lower, losing nearly 4 per cent in early trade.
The mixed global backdrop kept investors cautious even as domestic markets outperformed.
Wall Street Ends Week On A Positive Note
US markets ended Friday’s session with healthy gains.
The Dow Jones Industrial Average advanced 0.53 per cent, while the S&P 500 climbed 0.70 per cent. The technology-heavy Nasdaq Composite outperformed, ending 1 per cent higher.
The positive close on Wall Street provided some support to investor sentiment at the start of the week.
Gold And Silver Edge Higher
Precious metals traded in positive territory during early Monday deals.
Gold futures rose 0.21 per cent, while silver futures gained 1.21 per cent, reflecting cautious positioning by investors amid ongoing geopolitical and macroeconomic uncertainties.
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Technical Outlook Remains Constructive
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, Indian equities staged a broad-based recovery last week, with the Nifty gaining 2.6 per cent and the Sensex rising over 2,000 points. He noted that the rally was supported by widespread buying, with IT and automobile stocks emerging as the strongest performers.
On the technical front, Chouhan said the market has turned constructive after moving decisively above its 20-day Simple Moving Average (SMA), while bullish chart patterns indicate that the positive momentum could continue in the near term.
He identified the 24,130 level on the Nifty as the first key support, followed by 24,000. “As long as the index trades above these levels, the positive bias is expected to remain intact,” he said.
On the upside, Chouhan expects the 24,500-24,600 zone to act as the immediate resistance. A decisive move above 24,600, he said, could pave the way for a rally towards the 24,800-25,000 range.
However, he cautioned that a close below 24,200 could weaken the ongoing uptrend and increase the possibility of the index slipping towards the 24,000-23,800 zone.
