Indian benchmark indices ticked sharply higher on Monday, lifted by better-than-expected earnings from heavyweight Reliance Industries and positive cues from Asian markets, with investors closely tracking tensions between India and Pakistan.
The BSE Sensex jumped over 828 points, or 1.05%, to reclaim the 80,000 mark, trading at 80,041, while the Nifty50 advanced 235 points, or 0.98%, to 24,275 around 10:14 am.
From the Sensex pack, Reliance Industries, M&M, SBI, and ICICI Bank opened 1–2% higher, while HCL Tech, Nestle India, Maruti Suzuki, Asian Paints, and UltraTech Cement traded with losses.
Reliance Industries was the top gainer after posting a fourth-quarter profit that beat estimates, driven by strong growth in its retail and digital services businesses.
Meanwhile, Asian markets edged higher on the day in a cautious start amid continued uncertainty over U.S. trade policy.
U.S. President Donald Trump on Friday asserted that tariff negotiations were underway with China, which Beijing denied, marking the latest in a series of conflicting signals over the progress of de-escalation of a trade war threatening to sap global growth.
Investors will also closely watch for geopolitical cues amid tensions between India and Pakistan in the aftermath of the Pahalgam terror attack. The anxiety over India's next steps had pulled the Nifty and Sensex lower on Friday.
Barring Nifty IT, all sectoral indices traded in the green, with the Nifty PSU Bank, Consumer Durables, Oil & Gas, and Private Bank indices surging over 1%.
Experts View
"The heightened uncertainty relating to Indo-Pak tensions will weigh on the markets. It is very difficult to judge how much the market has discounted. Going by the resilience of the market, it can be said that the market has not discounted a scenario of the tensions culminating in a war between the two countries," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
"The major factor contributing to the resilience of the market is the sustained buying by FIIs, which has amounted to Rs 32465 crores in the last eight days. FIIs have turned sustained buyers in a dramatic reversal of their sustained selling strategy. This, in turn, is due to the relative under performance of US stocks, US bonds and the dollar. In an environment of a weakening US economy and a depreciating dollar, FIIs may continue to buy providing support to the market," Vijayakumar added.
Mandar Bhojane of Choice Broking said, "Technically, Nifty now has immediate support at the psychological level of 24,000, followed by deeper cushions at 23,800 and 23,600. On the upside, resistance is placed at 24,300, then 24,400 and 24,600. A breakout above 24,600 could trigger a rally toward 25,200 in the coming days. However, the formation of neutral candles in the last few sessions indicates indecision, often a precursor to either consolidation or a mild pullback."
Global Markets
Asian share markets and the dollar made a cautious start on Monday as confusion over U.S. trade policy showed little sign of easing, in a week packed with major economic data and mega-tech earnings.
Early action in markets was light, with MSCI's broadest index of Asia-Pacific shares outside Japan edging up 0.1%. Japan's Nikkei rose 0.9%, while South Korea firmed 0.2%.
EUROSTOXX 50 futures added 0.3%, while FTSE futures and DAX futures both rose 0.2%. Going the other way, S&P 500 futures dipped 0.4% in early trade, while Nasdaq futures eased 0.5%.
FII/DII Tracker
Foreign Institutional Investors (FIIs) remained consistent net buyers, marking their eighth straight session of inflows with Rs 2,952 crore on April 25. Domestic Institutional Investors (DIIs), after three sessions of net selling, turned net buyers with inflows of Rs 3,539 crore.
Crude Oil
Oil prices inched up in early trade on Monday but remained dogged by uncertainty over trade talks between the U.S. and China, clouding the outlook for global growth and fuel demand, while the prospect of OPEC+ raising supply cast more gloom.
Brent crude futures was up 22 cents by 0429 GMT to $67.09 a barrel, and U.S. West Texas Intermediate crude gained 24 cents to $63.26 a barrel. Both benchmarks nudged higher for a third session.
Rupee vs Dollar
The Indian rupee rose 12 paise to 85.29 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.19% to 99.66 level.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
The BSE Sensex jumped over 828 points, or 1.05%, to reclaim the 80,000 mark, trading at 80,041, while the Nifty50 advanced 235 points, or 0.98%, to 24,275 around 10:14 am.
From the Sensex pack, Reliance Industries, M&M, SBI, and ICICI Bank opened 1–2% higher, while HCL Tech, Nestle India, Maruti Suzuki, Asian Paints, and UltraTech Cement traded with losses.
Reliance Industries was the top gainer after posting a fourth-quarter profit that beat estimates, driven by strong growth in its retail and digital services businesses.
Meanwhile, Asian markets edged higher on the day in a cautious start amid continued uncertainty over U.S. trade policy.
U.S. President Donald Trump on Friday asserted that tariff negotiations were underway with China, which Beijing denied, marking the latest in a series of conflicting signals over the progress of de-escalation of a trade war threatening to sap global growth.
Investors will also closely watch for geopolitical cues amid tensions between India and Pakistan in the aftermath of the Pahalgam terror attack. The anxiety over India's next steps had pulled the Nifty and Sensex lower on Friday.
Barring Nifty IT, all sectoral indices traded in the green, with the Nifty PSU Bank, Consumer Durables, Oil & Gas, and Private Bank indices surging over 1%.
Experts View
"The heightened uncertainty relating to Indo-Pak tensions will weigh on the markets. It is very difficult to judge how much the market has discounted. Going by the resilience of the market, it can be said that the market has not discounted a scenario of the tensions culminating in a war between the two countries," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
"The major factor contributing to the resilience of the market is the sustained buying by FIIs, which has amounted to Rs 32465 crores in the last eight days. FIIs have turned sustained buyers in a dramatic reversal of their sustained selling strategy. This, in turn, is due to the relative under performance of US stocks, US bonds and the dollar. In an environment of a weakening US economy and a depreciating dollar, FIIs may continue to buy providing support to the market," Vijayakumar added.
Mandar Bhojane of Choice Broking said, "Technically, Nifty now has immediate support at the psychological level of 24,000, followed by deeper cushions at 23,800 and 23,600. On the upside, resistance is placed at 24,300, then 24,400 and 24,600. A breakout above 24,600 could trigger a rally toward 25,200 in the coming days. However, the formation of neutral candles in the last few sessions indicates indecision, often a precursor to either consolidation or a mild pullback."
Global Markets
Asian share markets and the dollar made a cautious start on Monday as confusion over U.S. trade policy showed little sign of easing, in a week packed with major economic data and mega-tech earnings.
Early action in markets was light, with MSCI's broadest index of Asia-Pacific shares outside Japan edging up 0.1%. Japan's Nikkei rose 0.9%, while South Korea firmed 0.2%.
EUROSTOXX 50 futures added 0.3%, while FTSE futures and DAX futures both rose 0.2%. Going the other way, S&P 500 futures dipped 0.4% in early trade, while Nasdaq futures eased 0.5%.
FII/DII Tracker
Foreign Institutional Investors (FIIs) remained consistent net buyers, marking their eighth straight session of inflows with Rs 2,952 crore on April 25. Domestic Institutional Investors (DIIs), after three sessions of net selling, turned net buyers with inflows of Rs 3,539 crore.
Crude Oil
Oil prices inched up in early trade on Monday but remained dogged by uncertainty over trade talks between the U.S. and China, clouding the outlook for global growth and fuel demand, while the prospect of OPEC+ raising supply cast more gloom.
Brent crude futures was up 22 cents by 0429 GMT to $67.09 a barrel, and U.S. West Texas Intermediate crude gained 24 cents to $63.26 a barrel. Both benchmarks nudged higher for a third session.
Rupee vs Dollar
The Indian rupee rose 12 paise to 85.29 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.19% to 99.66 level.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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