Markets Open Higher: Sensex Gains 47 Points, Nifty Holds Above 24,250

Sensex, Nifty Open Marginally Higher as Oil Prices, US Yields Keep Investors Cautious

Indian equity markets opened slightly higher on Friday, but gains remained muted as rising crude oil prices, elevated US bond yields and renewed geopolitical concerns weighed on investor sentiment.

At 9:16 am, the BSE Sensex was trading at 77,584.74, up 47 points, or 0.06 per cent. The NSE Nifty gained 17.90 points, or 0.07 per cent, to 24,249.75.

The opening followed a strong rebound on Thursday, when the Sensex surged 628 points and the Nifty ended a seven-session losing streak.

Broader markets outperformed the benchmark indices in early trade. The Nifty Smallcap 50 rose 0.64 per cent, while the Smallcap 100 and Smallcap 250 gained 0.55 per cent and 0.32 per cent, respectively. The Nifty Midcap 100 advanced 0.07 per cent.

Among sectoral indices, Realty led the gains with a rise of 0.68 per cent, followed by pharma at 0.38 per cent and metals at 0.36 per cent. Healthcare, private banks and auto stocks also opened higher.

IT stocks, however, remained under pressure, with the Nifty IT index declining 0.44 per cent. FMCG, cement and PSU bank stocks also traded lower.

Global Markets Remain Cautious

Asian markets were largely subdued as investors monitored rising global bond yields, higher oil prices and geopolitical tensions. Japan’s Nikkei was down around 0.8 per cent in early trade.

US Treasury yields resumed their upward move following a brief decline after an unexpected intervention by the US Treasury. The 10-year Treasury yield climbed to around 4.71 per cent, while the 30-year yield moved towards 5.25 per cent.

Higher yields can put pressure on equity valuations by raising borrowing costs and making bonds relatively more attractive to investors.

Crude oil remained another key concern for Indian markets. Brent crude rose to a one-month high of $94.71 a barrel amid heightened concerns over tensions involving Iran and the Strait of Hormuz. West Texas Intermediate crude was trading around $86.18 a barrel.

Higher oil prices are particularly important for India because of the country’s heavy dependence on crude imports and their potential impact on inflation and the current account.

Gold also remained above $4,500 an ounce as investors sought safe-haven assets amid uncertainty surrounding US policy, global debt and geopolitical risks.

Nifty Faces Resistance at 24,200-24,300

Ponmudi R, CEO of Enrich Money, said the market could remain range-bound despite Thursday’s recovery.

“Nifty 50 is likely to maintain a range-bound bias after snapping its seven-session losing streak. However, the index remains below its key short-term moving averages, suggesting that stronger follow-through buying is still required to confirm a sustained reversal,” he said.

According to Ponmudi, the 24,200-24,300 zone is the immediate resistance area for the Nifty. A sustained move above 24,400 could strengthen the recovery and take the index towards 24,500 and beyond.

On the downside, 24,100-24,150 is the immediate support zone, followed by the crucial 24,000 level. A decisive break below 24,000 could revive the short-term bearish trend.

Thursday’s Strong Rebound

The benchmark indices staged a sharp recovery on Thursday after seven consecutive sessions of losses.

The Sensex gained 628.04 points, or 0.82 per cent, to close at 77,537.72 after rising as much as 701 points during the session. The Nifty 50 advanced 153.55 points, or 0.64 per cent, to finish at 24,231.85.

The recovery was supported by easing global bond yields and renewed foreign fund inflows. However, with crude prices climbing again and global yields remaining elevated, investors are likely to remain cautious as markets look for sustained buying momentum to extend the rebound.