Indian equity markets opened higher on Monday, October 12, supported by positive Asian market cues and easing crude oil prices. However, the initial gains proved short-lived, with the Sensex falling around 400 points within an hour of opening amid concerns over foreign investor selling and elevated global bond yields.
The BSE Sensex opened at 72,771.32, gaining 298.99 points, or 0.41%. The NSE Nifty 50 began trading at 22,593.20, rising 72.75 points, or 0.32%, according to the Free Press Journal.
By 10 am, the Sensex had slipped to around 72,390, giving up its opening gains as investors remained cautious about global economic uncertainties and continued volatility in the domestic market.
Media, auto and chemical stocks lead early gains
Media, automobile and chemical stocks led early buying, with their sectoral indices gaining up to 1%. Realty, oil and gas, cement, metals and IT indices also advanced between 0.64% and 0.81%.
However, the Nifty PSU Bank index edged down 0.01%, reflecting a mixed trend across sectors.
The positive opening followed a recovery in the previous session, although market participants remained watchful of overseas developments and persistent selling by foreign institutional investors.
Softer crude oil prices support sentiment
Easing crude oil prices provided some support to Indian equities. Oil prices declined amid expectations of additional Russian supplies following an agreement to halt attacks on energy infrastructure.
Analysts said a sustained decline in crude prices, supported by favourable developments in West Asia, could improve market sentiment and create room for a stronger recovery.
However, elevated US bond yields and continued foreign fund outflows remain key risks for domestic equities. Domestic institutional investors have been absorbing some of the selling pressure from overseas investors.
Nifty support and resistance levels
Market experts are monitoring key technical levels to assess the direction of the next move. According to the report, Friday's rebound and an inside-bar formation opened the possibility of the Nifty moving towards 22,800–23,200.
However, the index could remain under bearish pressure if it fails to close above 22,575. On the downside, 22,295, Friday's reaction low, is a key level to watch.
Growth outlook remains a source of support
Despite near-term volatility, improving corporate profitability and an estimated FY27 GDP growth rate of 7.1% offer some support to the domestic market outlook.
Investors are also keeping an eye on upcoming corporate earnings for clues about business performance and future market direction. With crude oil prices, foreign fund flows and global bond yields continuing to influence sentiment, the Sensex and Nifty may remain volatile in the near term.
