India’s benchmark indices gained in early trade on Monday. The Nifty rose 59.20 points, or 0.24% percent, to open at 25,023, while the BSE Sensex added 195 points, or 0.24%, starting at 81,576.93.
Market analysts said that the impact of China’s stimulus measures and geopolitical concerns in Indian markets appears to be waning. However, they pointed out that markets are still expected to experience volatility in the near term due to the upcoming US presidential election, which is affecting global market sentiment.
Ajay Bagga, a banking and market expert, said, “Chinese stimulus boost is wearing thin but Indian markets are not benefitting for now. Earnings will be drivers of the Indian markets this week. The geopolitical risks have reduced slightly with a relatively calm weekend in the Middle East. October has played out to the US Presidential cycle historical performance. Expect more volatility going into the tight US race and a relief rally post the Nov 5th vote.”
All sectoral indices on the National Stock Exchange began the day in positive territory, with the Nifty Media index leading the pack, up by 0.55% during the opening session.
In terms of corporate earnings, major companies including Reliance Industries, HCL Technologies, Angel One, and Alok Industries are set to announce their quarterly results today.
Soni Patnaik, AVP, Derivatives Research Analyst at JM Financial Services, said, “Nifty continues to remain in a range of 24800 to 25200. However, with FIIs long continuing to be at 36%, it indicates the rise of net shorts, which could lead to selling pressure at resistance levels. For any short covering in Nifty, it would need to cross the 25300+ level. On the downside, if the support of 24800/24750 breaks, a fresh round of selling could push the index towards the 24500/24300 range.”
Meanwhile, in Asian markets, Hong Kong’s Hang Seng index dropped 1.21%, while Taiwan’s Weighted index also saw a slight decline. South Korea’s KOSPI index defied the trend, rising 1% at the time of this report.
(ANI)