Indian markets opened flat to mildly higher on Tuesday, in line with mixed Asian markets and a positive close on Wall Street overnight. Sensex opened at 80,037.20, barely moving from the previous close of 80,005.04, while Nifty opened at 24,328.85, a slight decline from Monday’s close of 24,339.15.
The indices are trading in red. The Sensex slipped 462.58 points or 0.58 per cent to trade at 79,542.46 at 10.05 am, while the Nifty tumbled 155.75 points or 0.64 per cent to trade at 24,183.40.
At the open, NTPC led the gainers on the NSE, up by 2.20 per cent, followed by BEL with a gain of 1.78 per cent. Eicher Motors rose by 1.46 per cent, while engineering giant L&T added 0.67 per cent. ICICI Bank maintained its positive run, up by 0.65 per cent, driven by optimism in the banking sector.
On the losing side, Bharti Airtel saw the steepest decline, down by 2.60 per cent. This was followed by M&M, which dropped by 2.57 per cent, and Sun Pharma, which lost 1.40 per cent. Other notable decliners included Britannia and Axis Bank, down by 0.99 per cent and 0.97 per cent, respectively.
According to Deepak Jasani, Head of Retail Research at HDFC Securities, “U.S. stocks closed higher on Monday as Wall Street geared up for a busy week packed with quarterly earnings from megacap technology companies and the final stretch before the Nov. 5 presidential election, while sentiment improved after energy supplies were not disrupted by weekend developments in the Middle East.”
Jasani added, “Crude oil futures ended sharply lower Monday, with U.S. and global benchmark crude prices logging their biggest one-day percentage decline in over two years after widely anticipated Israeli airstrikes against Iran did not hit crucial oil facilities.”
In the Indian market, the Nifty snapped a five-day losing streak on October 28, with Ameya Ranadive, Chartered Market Technician at StoxBox, noting, “Nifty50 has broken its five-day losing streak, closing above 24,300. The index began the session on a subdued note but gradually climbed, reaching an intraday high of around 24,500. However, in the latter half of the day, it retraced some gains, ultimately finishing at 24,340.”
Sameet Chavan, Head of Research, Technical and Derivative at Angel One, said, “Technically, prices defended Friday’s low and surpassed its high, closing within the trading range established on Friday. The daily chart reveals a ‘Spinning bottom’ pattern, indicating indecision; however, the oversold momentum indicators suggest strong support around 24,100 and 24,000 as we approach monthly expiry and a festive week.”
On the sectoral front, PSU banks were the standout performers, with Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., noting, “Banking stocks led the charge in yesterday’s trade, with ICICI Bank, Bandhan Bank, Indian Bank, and Bank of Baroda all posting robust Q2 earnings.”
In the pre-market session, the SGX Nifty, which tracks the Nifty futures on the Singapore Exchange, was up by 23 points, indicating a positive opening for the domestic indices.
Hardik Matalia, Derivative Analyst at Choice Broking, said, “The benchmark Sensex and Nifty indices are expected to open flat on Oct 28, following GIFT Nifty trends indicating a gain of 23 points for the broader index.”
However, Shrikant Chouhan, Head Equity Research at Kotak Securities, warned, “If the index falls below 24,050/79,100, the sentiment could change, and traders may prefer to exit long positions as the index may gradually fall to 23,900 or 23,800 levels.”
Vikas Jain, Head of Research at Reliance Securities, noted, “The market is expected to open positively, driven by a rally in global markets, strong domestic corporate earnings, reduced geopolitical tensions between Iran and Israel, and a notable drop in oil prices, which have fallen to a one-month low of under $72 per barrel.”
The morning market commentary from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, suggests that the resilience of the market despite persistent FII selling is a positive sign. “The implication of this change in trend, despite the persistence of FII selling, is that the retail investors are back in buying mode,” he said.
As investors closely watch the upcoming US elections, the quarterly earnings season, and the overall market dynamics, the Indian markets are expected to take cues from these global and domestic factors in the trading session ahead.