Market Today: Sensex Rises 75 Points, Nifty Holds Above 23,450 as Oil Prices Ease

Stock Market Today, September 22: Sensex, Nifty Open Higher as Oil Prices Ease; IT Stocks Under Pressure

Indian equity markets opened higher on Tuesday, September 22, supported by softer crude oil prices, easing US Treasury yields and positive global market trends. However, persistent foreign institutional selling and ongoing geopolitical uncertainty limited the gains.

At 9:22 am, the BSE Sensex was trading at 74,934.96, up 75.97 points or 0.10%, while the Nifty 50 gained 27.05 points or 0.12% to reach 23,441.35. Broader indices also started in positive territory, with the Nifty Next 50, Nifty Bank and Nifty Midcap Select recording early gains.

Market analysts attributed the positive opening largely to the continued decline in crude oil prices. Oil prices have fallen for four straight sessions, offering some relief to oil-importing economies such as India.

WTI crude was trading in the $92-$93 per barrel range, while the US 10-year Treasury yield slipped back below 5% after recently touching multi-year highs.

Ponmudi R, CEO of Enrich Money, said softer crude prices and lower bond yields were helping improve the global risk environment. However, continued foreign selling remains a challenge for Indian equities, even as domestic institutional investors continue to provide support.

Asian Markets Trade Higher

Asian equities largely advanced on Tuesday, tracking gains on Wall Street and taking support from lower oil prices.

South Korea’s KOSPI climbed nearly 2%, while Taiwan stocks gained around 1.3%. China’s blue-chip index rose approximately 0.75%, and Hong Kong’s Hang Seng advanced about 0.4%. Japan’s Nikkei 225 remained closed for a market holiday.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained more than 1% in early trading. Nasdaq futures rose around 0.37%, while European equity futures were up approximately 0.3%.

Technology stocks led gains in several Asian markets as investors focused on falling oil prices and the possibility of diplomatic engagement between the US and Iran.

Crude Oil Prices Remain Key Market Trigger

Crude oil continued to remain one of the biggest factors influencing global markets. Brent crude futures were around $100.22 per barrel, following a decline of more than 3% in the previous session, when prices briefly fell below the $100 mark.

Lower crude prices are generally positive for India because of the country’s heavy dependence on oil imports. A sustained decline in prices could help contain inflationary pressures and support India’s external balance.

However, developments in the Middle East remain a significant risk. Any escalation involving the US and Iran could push crude prices higher again and reverse the recent market relief.

US-Iran Engagement in Focus

Investor sentiment has also benefited from expectations of a possible meeting between US President Donald Trump and Iranian President Masoud Pezeshkian, who is expected to be in New York for the UN General Assembly this week.

According to Ponmudi, geopolitical uncertainty is likely to keep investors cautious, with buying potentially remaining selective at higher market levels.

He noted that uncertainty over Middle East tensions and regional energy supplies remains a key risk, as any escalation could quickly reverse the recent fall in crude prices.

Trump-Xi Meeting Also Being Watched

Investors are also monitoring a high-level meeting between Trump and Chinese President Xi Jinping expected later this week. Markets are looking for indications that the world’s two largest economies can avoid a further deterioration in trade relations.

Meanwhile, continued optimism surrounding artificial intelligence is providing additional support to technology-related stocks globally.

IT Stocks Under Pressure

IT stocks remained under pressure after the sector underperformed the broader market in the previous session.

The Nifty IT index declined 1.19% on Monday, even as the Nifty 50 gained 0.29%.

Several IT counters continued to lag in Tuesday’s early trade, with TCS, Infosys, Tech Mahindra and HCL Technologies trading lower. In contrast, heavyweight banks, automobile stocks and select financial counters provided support to the broader market.

Dollar, Interest Rate Outlook in Focus

The US dollar remained firm as investors assessed the possibility of further interest-rate increases by major central banks.

The Dollar Index was around 100.4, close to a seven-week high, while the Japanese yen stood near 157.39 per US dollar.

Investors are also reassessing the outlook for US monetary policy following the Federal Reserve’s latest rate decision and its indication that inflation remains a concern. Market expectations for an October rate hike have also increased, according to CME FedWatch data cited in market commentary.

Monday Market Close

In the previous session, Indian benchmark indices ended higher, supported by falling crude oil prices, lower bond yields and hopes of diplomatic engagement between the US and Iran.

The Nifty 50 closed at 23,414.30, gaining 67.90 points or 0.29%, while the Sensex advanced 564.03 points or 0.76% to finish at 74,858.99.