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Indian stock markets opened sharply higher on Monday, supported by strong gains across Asian markets and a steep fall in global crude oil prices.
The BSE Sensex jumped 826.09 points or 1.10 per cent to 76,241.44 in early trade, while the NSE Nifty 50 rose 239.90 points or 1.01 per cent to 23,959.20. Market experts said the upbeat opening reflected improving global sentiment and optimism in domestic equities. Asian markets also traded firmly in positive territory. Japan's Nikkei 225 led the rally, surging more than 3 per cent, while Taiwan's Weighted Index gained nearly 2.9 per cent. Other regional indices, including Hong Kong's Hang Seng, China's Shanghai Composite, Thailand's SET Composite and Singapore's Straits Times, also traded higher. South Korea's KOSPI remained largely flat, while Indonesia's Jakarta Composite was marginally lower. The GIFT Nifty also indicated a strong start for Indian equities, trading 292.50 points or 1.23 per cent higher at 23,983.50. Meanwhile, global crude oil prices witnessed a sharp decline. Brent crude fell over 5.4 per cent to USD 97.91 per barrel, while US crude dropped 5.7 per cent to USD 91.09 per barrel. Gold prices, however, edged higher by 0.92 per cent. The fall in oil prices came amid reports that Iran had agreed in principle to reopen the Strait of Hormuz and dispose of its stockpile of highly enriched uranium under a developing agreement with the United States. Rajesh Palviya, Head of Research at Axis Direct, said, "Commodity prices remain high, with Brent crude trading just below USD 100 per barrel, while precious metals continue to trade firmly, indicating a cautious tone in global markets." He added that the market outlook remained positive and a sustained move above 23,850 on the Nifty could trigger fresh momentum towards 24,000-24,200 levels. Shrikant Chouhan, Head Equity Research, Kotak Securities, said, "For positional traders, the 50-day SMA or 23,600/75100 would act as an immediate support zone. As long as the market remains above this level, positive sentiment is likely to continue." He added that a breakout above 23,850 on the Nifty could push the index towards the 24,000-24,200 range. However, Chouhan cautioned that sentiment may weaken if the market slips below the 23,600 mark. "Below this level, the index could retest the 23,400-23,300 levels," he said. On the banking front, Chouhan said the Bank Nifty has shown signs of recovery after a prolonged correction. "Support zones for traders are around 53,500 and 53,000. Above these levels, a pullback rally is expected to continue towards 54,500 and possibly 55,000," he said. He also warned that a fall below 53,000 could weaken sentiment in banking stocks. (ANI)
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