Sensex Rises 139 Points, Nifty Holds Above 23,350; Crude Oil, Global Cues In Focus

Stock Market Today, September 23: Indian equity benchmarks began Wednesday’s session on a positive note, supported by favourable global market trends and a decline in crude oil prices.

The gains came as investors monitored developments in the Middle East and looked for signs of improved energy supply. At 9:16 am, the Sensex was up 139.36 points, or 0.19%, at 74,668.44. The Nifty50 climbed 0.16% to 23,365.75.

Broader markets also opened in the green. The Nifty Next 50 advanced 0.39%, while the Nifty Midcap 100 and Nifty Smallcap 100 gained 0.26% and 0.39%, respectively.

Global Cues Support Domestic Markets

Asian equities maintained a positive tone in early trading, with South Korea’s KOSPI rising more than 1%. Investors were also tracking lower crude oil prices amid reports pointing to improving prospects for energy supplies from the Middle East.

Brent crude remained below the $100-per-barrel level, while WTI crude was trading around $90 a barrel. Japan’s Nikkei remained closed due to a holiday.

Lower crude prices are particularly relevant for India because of the country’s reliance on imported energy. A sustained decline in oil prices could provide some relief to the broader macroeconomic environment. However, persistent foreign investor outflows and uncertainty over the Middle East continue to weigh on market sentiment.

Metal, PSU Bank Stocks Gain

Sectoral indices were mixed during early trade. Nifty Metal emerged among the top gainers, rising 0.87%. Nifty Realty climbed 0.46%, while Nifty PSU Bank advanced 0.44%. Nifty Financial Services and Nifty Private Bank also traded higher.

IT stocks, meanwhile, came under pressure. Nifty IT declined 0.36%, while Nifty Media fell 0.13% and Nifty Pharma slipped 0.10%.

What Is Driving The Market?

V K Vijayakumar, chief investment strategist at Geojit Investments Ltd, said the market has remained technically weak with a downward bias in recent sessions. According to him, a significant trigger would be required to alter the current market structure.

Vijayakumar pointed to crude oil prices and US bond yields as two factors that could influence the market. He noted that while Brent crude has moved below $99, oil prices have not fallen sharply enough to provide a stronger trigger. At the same time, elevated inflation in developed economies could keep US bond yields high.

He said these factors could limit the scope for a sustained market rally in the near term.

Mid And Small-Caps Remain In Focus

Domestic liquidity continues to support the broader market, with investor attention increasingly shifting towards mid- and small-cap stocks. Vijayakumar noted that expectations of stronger growth have attracted money into several companies in these segments.

However, he also flagged stretched valuations in parts of the mid- and small-cap space.

According to Vijayakumar, the market currently shows a valuation gap, with relatively attractive valuations among some large-cap stocks existing alongside elevated valuations in several mid- and small-cap counters. While historical market behaviour suggests that such valuation differences can eventually narrow, the timing of that adjustment remains difficult to determine.