Indian Markets Begin On Positive Note Despite Underlying Weakness

Indian equity markets opened higher on Monday, buoyed by favorable cues from both the US and Asian markets.

As of 9:51 AM, the Sensex rose by 193 points, or 0.24%, reaching 81,882, while the Nifty added 36 points, or 0.15%, settling at 25,051.

Despite the positive opening, the overall market sentiment remained cautious. On the National Stock Exchange (NSE), 1,737 stocks fell, contrasting with 658 that recorded gains, indicating a prevailing bearish trend.

Among the top performers in the Sensex index were ITC, Kotak Mahindra Bank, HCL Tech, ICICI Bank, Bharti Airtel, Wipro, Tata Motors, UltraTech Cement, Nestle, Bajaj Finance, TCS, Infosys, Axis Bank, and SBI. Conversely, Titan, HDFC Bank, NTPC, Maruti Suzuki, Power Grid, HUL, Sun Pharma, L&T, and Asian Paints struggled, emerging as the biggest losers.

Hardik Matalia, a derivative analyst at Choice Broking, noted that while the Nifty experienced a positive start, it might find support at 25,000, followed by 24,900 and 24,750.

On the upside, immediate resistance is anticipated at 25,150, with further levels at 25,250 and 25,300.

Meanwhile, midcap and small-cap stocks faced selling pressure. The Nifty midcap 100 index declined by 113 points, or 0.19%, to reach 58,374, while the Nifty small-cap 100 index dropped 60 points, or 0.32%, landing at 18,702.

Asian Markets Surge As US Stocks Close Strong

Most Asian markets demonstrated upward movement, with Tokyo, Hong Kong, Bangkok, Seoul, and Jakarta showcasing significant gains. The US markets also closed positively on Friday.

Market analysts emphasized that global stock markets remain resilient amid rising tensions in the Middle East.

They highlighted that the strong performance of the US economy, reflected in surprisingly robust September non-farm job numbers of 254,000, serves as a major positive for equity markets.

This, coupled with declining inflation in the US, presents an optimistic outlook.

In terms of investment activities, foreign institutional investors (FIIs) sold equities valued at Rs 9,896.95 crore on 4 October, while domestic institutional investors made purchases worth Rs 8,905 crore on the same day, indicating a complex interplay of market dynamics.

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