Mumbai, Aug 24 (SocialNews.XYZ) Domestic equity markets opened higher on Monday after two straight weekly losses amid decline in crude oil prices, though investors awaited clarity on potential US sanctions on Iran later in the session amid elevated geopolitical tensions.
Nifty opened at 24,285.05, up 33.05 points or 0.14 per cent, while Sensex started at 77,629.56, higher by 88.73 points or 0.11 per cenet.
Metal stocks led sectoral gains with Nifty Metal index rising nearly 1 per cent. Nifty Media gained 0.72 per cent and Nifty Oil & Gas rose 0.59 per cent, while Nifty IT advanced 0.4 per cent. Auto, private banks and financial services indices also were trading positively in early trade.
Meanwhile, Nifty Healthcare fell 0.5 per cent, while Nifty Pharma declined 0.5 per cent. Similarly, consumer durables, realty and FMCG shares were also in negative territory.
Analysts said Nifty could remain range-bound between 24,200 and 24,600 in the near term. While a resilient domestic economy and improving earnings growth provide fundamental support for a rally, elevated crude oil prices and geopolitical risks could cap gains.
“With Brent around $93 and escalating geopolitical tensions associated with the West Asian crisis and the Russia-Ukraine war, any rally is likely to be met with increased selling at higher levels,” they said.
However, the broader continues to see strong investor activity, particularly in companies reporting robust results and offering favourable forward guidance.
Segments such as CDMO, healthcare, precision engineering and power infrastructure are attracting buying interest, although investors have been cautioned against chasing stocks at elevated valuations, the market experts said.
Technically, analysts said a weekly hammer candle on the Nifty reinforced key support levels and kept the reversal setup intact. The headline index could move towards 24,317-24,380 and subsequently 24,400-24,545, provided the 24,060-24,000 support zone holds. Volatility could rise ahead of Tuesday's F&O expiry.
In the previous session on August 21, domestic institutional investors extended their buying streak to nine consecutive sessions and purchased equities worth Rs 2,124 crore. Foreign institutional investors remained net sellers for a second straight session and offloaded shares worth Rs 543 crore.
Additionally, Asian equities fell on Monday ahead of key events this week, including Nvidia's earnings announcement and the Federal Reserve's annual symposium.
In addition, crude oil prices declined up to 2 per cent as investors awaited details of fresh US sanctions on Iran. Tehran has played down the prospect of tighter economic measures. Brent crude was trading around $92 a barrel, down more than 2 per cent, while US WTI slipped below $85 a barrel.
Source: IANS
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