Indian equity markets open up to 1 pc higher despite mixed global cues

Mumbai: Indian equity benchmarks opened strong on Monday, surging about 1 per cent each despite mixed global cues amid buying in energy, auto and information technology (IT) sector stocks. At open, Sensex was up 718.71 points or 0.97 per cent at 75,178.24, while Nifty was up 169.20 points or 0.73 per cent at 23,222.30.

Sectorally, energy sector shares led gain as Nifty Oil & Gas surged more than 2 per cent. Meanwhile, Nifty Auto rose 0.77 per cent and Nifty IT gained 0.51 per cent. On the losing side, Nifty Realty declined 0.74 per cent and Nifty Media was down 0.06 per cent. There are clear indications of a turnaround in the Indian market assisted by positive external and domestic cues, market experts said.

“Externally, the slight cooling of Brent crude prices from last week’s high of $118 to $110 now is a relief. Equally important is the decline in the US 10-year bond yield to 4.93 per cent,” they said. “Perhaps more important than these external tailwinds is the sharp weakening of the AI trade, which pulled down the Nasdaq by 2.8 per cent last Friday.

The weakening trend in AI trade is beneficial for India which is widely regarded as a counter-AI play,” the experts added. Fundamental domestic cues are also supportive, according to them. The 17.94 per cent credit growth and robust GST collections in October reflect a resilient economy gathering momentum.

“Another strong positive which can drive the market up is the rising expectations surrounding a thorough rejig of the LTCG tax in the coming Budget, most likely its abolition. The market, it appears, has started discounting this. In brief, for now, it is an advantage for bulls,” according to analysts.

For Nifty, RSI improved to 53.50, above its average of 45.97, while PCR at 1.24 indicated a positive derivatives setup. Immediate support is placed at 22,900-23,000, while resistance is seen at 23,200-23,250. A sustained move above the 50-day EMA would further strengthen the recovery.

Asian shares traded lower while crude oil witnessed weakness. International benchmark Brent crude declined 3 per cent to $109.97 per barrel, while US West Texas Intermediate (WTI) slipped about 3 per cent to $100.81. In the US, Wall Street ended in negative territory in the previous session, with Nasdaq posting its steepest one-day fall since June 5 as disappointing Intel and Amazon results intensified concerns over heavy AI spending.