Markets opened higher on Monday, with the Nifty 50 and Sensex both gaining in early trade. As of 9:30 AM, the Nifty was up 0.17 per cent at 24,582.20, while the Sensex rose 0.19 per cent to 80,593.33.
The positive start follows a strong rally in global markets last week, driven by expectations of potential interest rate cuts by the U.S. Federal Reserve. U.S. indices saw their best week of the year, with the Nasdaq Composite closing above its 50-day moving average.
Top gainers on the NSE in early trade included BPCL (2.80 per cent), Shriram Finance (2.57 per cent), ONGC (2.08 per cent), NTPC (1.88 per cent), and LTIMindtree (1.37 per cent). Meanwhile, top losers were M&M (-1.35 per cent), HDFC Life (-1.10 per cent), Grasim (-1.02 per cent), Nestle India (-0.79 per cent), and Tata Motors (-0.68 per cent).
Vikas Jain, Head of Research at Reliance Securities, noted, “NIFTY-50 has closed at 8 days high with sharp broader positive momentum and now the key resistance will act as key support of 24,400 from current levels.” He added, “On the higher side the gap levels of 24,800 will be the key resistance followed by the round number of 25,000 levels.”
Investors are closely watching key events this week, including the release of U.S. Federal Open Market Committee (FOMC) meeting minutes on Wednesday and Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium on Friday.
Domestic factors supporting market sentiment include falling oil prices, strong quarterly corporate earnings, and robust retail participation. The government’s reduction of the windfall tax from ₹4,600 per ton to ₹2,100 per ton may benefit oil marketing stocks.
Avdhut Bagkar, Technical and Derivatives Analyst at StoxBox, commented on the market outlook: “The Indian indices are expected to start the day positively, taking cues from GIFT Nifty.” He also noted that Asian markets displayed mixed performance, with the Nikkei dipping after its previous week’s rally and the Hang Seng staying in positive territory.
In the commodities market, gold prices surged to an all-time high above $2,500 per ounce, potentially boosting gold finance stocks. Meanwhile, Brent crude oil futures fell 2 per cent to $79 per barrel on Friday due to concerns about Chinese demand and easing geopolitical risks.
The Bank Nifty index also showed positive momentum. Jain stated, “Bank Nifty has closed at 8 days high with key supports of its 100-day average over the past few trading sessions indicating positive trend.” He projected upward momentum to continue near 51,300 followed by 51,800 levels over the next few days.
Global factors influencing the Indian markets include the U.S. July inflation dropping to a three-year low below 3 per cent, the Producer Price Index (PPI) indicating cooling inflation, and both retail sales and jobless claims exceeding expectations. These developments have increased expectations for a more substantial Fed rate cut, with some anticipating a 50-basis point reduction in September.