Benchmark Indian indices opened slightly higher on Monday, although gains remained limited as investors assessed a combination of domestic and global factors.
The Sensex rose 177.81 points, or 0.22 per cent, to reach an early-session high of 78,676. The Nifty followed with an increase of nearly 50 points, equivalent to 0.2 per cent, to trade around 24,620.
Steady domestic consumption and continued foreign investor buying provided support to equities. Stronger crude oil prices created an opposing pressure on market sentiment.
Healthcare stocks led the sectoral advance during the initial trading hours.
The Nifty Pharma index climbed 0.72 per cent, while both the Nifty MidSmall Healthcare and Nifty500 Healthcare indices added 0.63 per cent.
Information technology stocks also attracted buying interest.
The Nifty MidSmall IT & Telecom index gained 0.58 per cent, whereas the broader Nifty IT index moved up 0.53 per cent.
Investors showed interest in private banks, automobile companies, consumer durable firms and real estate stocks.
The oil and gas segment remained among the weaker performers as international crude prices moved higher. The Nifty Oil & Gas index slipped 0.27 per cent during early trading.
Analysts retained a mildly optimistic outlook for Indian equities, citing stronger-than-expected first-quarter financial results and continued strength in domestic demand.
With the quarterly results season approaching its conclusion, many listed companies have posted earnings that surpassed market expectations.
Analysts expect resilient domestic consumption to continue supporting corporate sales and profitability during the second quarter.
Banking and financial services, automobiles, pharmaceuticals, metals and digital platform businesses could remain relatively stable despite challenges such as deficient monsoon rainfall.
Foreign institutional investors have emerged as a positive factor for the domestic market. They turned net buyers in July and continued purchasing Indian equities during most trading sessions in August so far.
Crude oil remained a key global market factor. Brent crude traded more than 1 per cent higher at $84.73 a barrel, while West Texas Intermediate gained 1.59 per cent to reach $79.43 a barrel.
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