Mumbai: Indian Equity Indices Start the Week on a Positive Note Amid Global Trends
On Monday morning, Indian equity indices opened in the green, buoyed by favorable global cues from both the US and Asian markets. As of 9:51 a.m., the BSE Sensex recorded an increase of 193 points, or 0.24%, reaching 81,882, while the NSE Nifty rose by 36 points, or 0.15%, to settle at 25,051.
Despite the positive opening, market sentiment remained cautious, with a notable trend towards negativity. On the National Stock Exchange (NSE), 1,737 shares were trading in the red compared to 658 shares in the green, indicating a mixed market response.
Key Gainers and Losers
In the Sensex pack, several heavyweight stocks performed well, with ITC, Kotak Mahindra Bank, HCL Technologies, ICICI Bank, and Bharti Airtel among the top gainers. Conversely, Titan, HDFC Bank, and Maruti Suzuki led the list of top losers, underscoring a selective market movement.
Technical Insights
Hardik Matalia, a derivative analyst at Choice Broking, provided insights into the Nifty’s potential trajectory. He noted that after a strong opening, Nifty could find support at 25,000, followed by levels at 24,900 and 24,750. On the upside, immediate resistance is expected at 25,150, with further resistance levels at 25,250 and 25,300.
Sector Performance
The trend in midcap and smallcap stocks was less favorable, with the Nifty Midcap 100 index declining by 113 points, or 0.19%, to 58,374, while the Nifty Smallcap 100 index fell by 60 points, or 0.32%, to 18,702. This suggests a cautious approach among investors, particularly in smaller capitalization stocks.
Global Context
Asian markets generally showed gains, with significant performances noted in Tokyo, Hong Kong, Bangkok, Seoul, and Jakarta. This upward momentum followed a positive close in the US markets on Friday, reflecting a resilient global sentiment.
Market experts have pointed out that, despite ongoing geopolitical tensions in the Middle East, the global stock markets have demonstrated remarkable resilience. A significant driver of this positivity is the robust performance of the US economy, highlighted by the surprisingly strong September non-farm job numbers, which increased by 254,000. This favorable economic backdrop, coupled with declining inflation rates in the US, provides a positive outlook for equity markets.
Investor Activity
On October 4, foreign institutional investors (FIIs) sold equities worth ₹9,896.95 crore, while domestic institutional investors (DIIs) purchased equities worth ₹8,905 crore. This activity illustrates the contrasting strategies of domestic and foreign investors amid fluctuating market conditions.
As the week unfolds, market participants will be keenly observing both domestic trends and international developments that could influence the Indian equity landscape.
