Indian stock markets opened higher on Monday ahead of Diwali, as festive optimism and record consumer spending lifted investor sentiment.
However, experts cautioned that the session may remain volatile due to the upcoming trading holiday and the special Muhurat trading session scheduled for Tuesday.
The Nifty 50 index opened at 25,824.60, up 114.75 points or 0.45 per cent, while the BSE Sensex started at 84,267.59, rising 315.40 points or 0.38 per cent.
Market analysts noted that Indian exchanges will remain open only for the Muhurat trading session on Tuesday and will be closed on Wednesday, which could prompt profit booking later in the day as traders square off positions ahead of the shortened week.
Banking and market expert Ajay Bagga told ANI, “Indian market futures are continuing their strong momentum this morning. With positioning in the overbought zone and key resistance levels approaching on both Nifty and Bank Nifty, it will be an interesting session. Today could see a surge followed by profit booking in the afternoon, as positions are adjusted ahead of the truncated week. Overall, the chances of Indian markets reaching last year’s all-time highs are good, as the earnings downgrade cycle seems to be bottoming out. A possible US trade deal in November could act as a major catalyst driving Indian markets to catch up with global peers.”
The festive season has witnessed robust consumer spending across sectors such as automobiles, white goods, apparel, gold, and silver.
Dhanteras auto and gold sales reached record highs this year. With nearly 48 lakh weddings expected in November and December, analysts anticipate a strong consumption surge that could further support market sentiment as Indian equities attempt to surpass their September 2024 all-time highs in the coming weeks.
This year’s Muhurat Trading 2025 will take place on Tuesday, October 21, from 1:45 pm to 2:45 pm. Markets will reopen for regular trading on Thursday.
Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, said, “The Nifty 50 is showing exceptional strength, confirmed by three consecutive bullish weekly candles that have led to a 4 per cent gain in three weeks. This indicates strong and persistent buyer interest. The index has achieved a major breakout from a 160-day channel pattern, signaling the start of a new uptrend phase.”
He added, “Currently, prices are consolidating between key resistance at 25,650 and support at 24,500. A decisive breakout above resistance would confirm a continued rally. The alignment above key moving averages and sustained momentum indicate that the index could achieve a new all-time high.”
Globally, investor sentiment improved as US-China trade tensions eased, with Vice Premier He Lifeng and Treasury Secretary Scott Bessent scheduled to meet this week. Meanwhile, the US government shutdown entered its third week, impacting around 0.3 per cent of GDP, while markets anticipate a Federal Reserve rate cut in the upcoming policy meeting.
On the geopolitical front, the meeting between President Donald Trump and President Volodymyr Zelensky in Washington failed to make progress, as Trump reportedly pressed Zelensky to accept Putin’s terms for peace. European nations reaffirmed their “unwavering commitment to Ukraine” amid ongoing tensions.
Across Asia, markets traded higher — Japan’s Nikkei surged 2.97 per cent, Hong Kong’s Hang Seng rose 2.6 per cent, Taiwan’s weighted index gained 1.46 per cent, and South Korea’s KOSPI climbed 1.39 per cent — reflecting an overall positive tone in the region.
-ANI