Indian stock markets opened higher on Wednesday, October 21, as optimism over a potential India-US trade agreement boosted investor sentiment. The BSE Sensex surged over 570 points, while the NSE Nifty 50 reclaimed the 23,000 mark, supported by buying in information technology and banking stocks.
The Sensex climbed 570.89 points, or 0.77 per cent, to 74,423.79 in early trade. The Nifty 50 gained 167.35 points, or 0.73 per cent, to reach 23,055.70.
The Sensex opened at 74,337.93, compared with its previous close of 73,852.90. Meanwhile, the Nifty began trading at 23,016, against its previous close of 22,888.95.
IT stocks lead market gains
Information technology stocks led the rally, with the Nifty IT index advancing 2.03 per cent. The Nifty PSU Bank index rose 0.74 per cent, while the Nifty Metal index gained 0.70 per cent.
Among individual stocks, Infosys advanced 2.47 per cent, followed by Tata Consultancy Services (TCS), which gained 2.08 per cent. UltraTech Cement shares rose 1.96 per cent.
However, Bajaj Finance declined 2.32 per cent, emerging as one of the key laggards, while Bajaj Finserv slipped 0.49 per cent.
India-US trade deal optimism supports sentiment
Investor sentiment improved amid hopes of progress in the proposed India-US trade agreement. Developments in the negotiations remain a key factor for domestic equities as investors assess the potential implications for trade, exports and corporate earnings.
Market participants are also tracking the September-quarter earnings season and the much-awaited Jio Platforms initial public offering (IPO), which opened for subscription on Wednesday.
Rising crude oil prices remain a concern
Despite the strong opening, elevated crude oil prices and US bond yields continued to pose challenges for the market.
Brent crude traded at USD 110.34 per barrel, up 1.43 per cent. Higher oil prices remain a concern for India because of the country's dependence on crude imports, which can increase the import bill and put pressure on inflation and corporate profitability.
Dr V K Vijayakumar, chief investment strategist at Geojit Investments, cautioned that external pressures could sustain a sell-on-rally trend. However, improving corporate earnings, attractive valuations among large-cap stocks and strong domestic liquidity could provide support during market corrections.
Nifty resistance and support levels
Market analyst Vipin Dixena identified the 23,000–23,100 range as the immediate resistance zone for the Nifty. On the downside, the 22,800–22,700 range remains an important support area.
Investors will continue to monitor India-US trade negotiations, second-quarter FY27 corporate earnings, crude oil price movements and the Jio Platforms IPO for further direction in the domestic stock market.
