Mumbai, Maharashtra: Indian equity markets opened Friday with a slight uptick, despite persistent headwinds from elevated Brent crude oil prices, renewed geopolitical tensions, and a generally weak global market sentiment.
This comes as investors weigh various domestic and international factors.
The Sensex began the day at 74,199.69, showing a marginal gain of 85.26 points (0.11%) from its previous close to trade around 74,236.30. Similarly, the Nifty opened at 22,964.50 and was up by 19.25 points (0.08%) at 22,956.00, against its last close of 22,936.75. While most broader market indices saw declines, the IT, mid-cap IT, and telecom sectors emerged as early gainers, offering some stability.
In contrast, the Nifty Cement index was among the top losers, shedding over one percent, indicating sector-specific pressures. On the BSE, key gainers included Trent, Sun Pharma, and Infosys, while BEL, Tata Steel, and Bajaj Finance were among the top drags. The trend was largely mirrored on the NSE, with Trent, Sun Pharma, and Infosys leading the gains, and Coal India, Nestle, and Asian Paints experiencing losses.
Commodity markets saw Brent crude trading at approximately USD 112.13 per barrel, and crude oil at USD 103.15 per barrel, highlighting the inflationary pressure from energy costs. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, pointed out that rising crude oil prices, potentially exacerbated by US actions against Iran, are creating a strong headwind for the market. He also noted a rally in the small-cap segment following a recent sell-off, suggesting investors are finding value in growth stocks despite high valuations. However, he advised that true value buying opportunities might lie in large-cap stocks currently out of favor due to foreign institutional investor (FII) selling.
Market analyst Vipin Dixena emphasized the critical nature of maintaining recent gains. He warned that elevated crude oil prices, fueled by geopolitical tensions, could significantly increase India’s import bill and exacerbate inflation. Dixena also highlighted that weakness in Asian and Wall Street tech markets could cap gains in Indian stocks. He set Nifty’s immediate resistance at 23,000–23,100, with 22,850–22,800 serving as crucial support. A sustained move above 23,000 could strengthen recovery, while a break below support might invite renewed selling pressure.