Markets – Indian Equities Begin Monday Higher as Monsoon and FII Flows Support Sentiment
Markets – Domestic equities opened on a firm note on Monday, with investors drawing confidence from improving monsoon conditions, renewed foreign fund inflows and lower global crude oil prices. The early gains came as traders prepared for the upcoming June-quarter corporate earnings season.
Market outlook remains focused on foreign investment flows and quarterly earnings –
The BSE Sensex opened at 77,940.90, rising 176.99 points, or 0.23 per cent, from its previous close. The NSE Nifty 50 also moved higher at the start of trade, adding 36 points, or 0.15 per cent, to begin at 24,306.85.
Realty and metal shares lead early sectoral gains
Real estate stocks were among the strongest performers in the opening session. The Nifty Realty index gained 0.86 per cent, while the Nifty Metal index rose 0.39 per cent. Healthcare-linked shares also saw buying interest, with the Nifty MidSmall Healthcare index advancing 0.32 per cent and Nifty Pharma increasing 0.24 per cent.
Several other sectoral indices, however, remained under pressure during the first phase of trading, reflecting selective buying across the market.
Technology and banking stocks face selling pressure
A number of major Nifty constituents traded lower in early deals. Kotak Mahindra Bank, Tata Consultancy Services, Tech Mahindra, Wipro and Infosys were among the stocks that declined. Eicher Motors, IndiGo, Tata Consumer Products, ONGC and ITC also featured among the early losers.
The mixed sectoral performance suggested that investors were favouring specific pockets of the market rather than participating in a broad-based rally.
Foreign buying and monsoon progress improve sentiment
Market participants said the return of the monsoon and foreign institutional investors turning net buyers on Friday have provided near-term support to domestic equities. Improved rainfall is closely watched because of its potential effect on agricultural activity, rural demand and inflation trends.
Attention is now expected to move towards the June-quarter earnings announcements. Analysts expect financial services and automobile companies to deliver relatively stronger results, supported by demand conditions and operational performance. Information technology companies, meanwhile, may report slower earnings growth and cautious business guidance.
Nifty technical levels remain in focus
Technical analysts said the Nifty’s broader structure remains positive after it recorded gains for three consecutive sessions last week. The index is continuing to trade above important moving average levels, which is being viewed as a supportive signal for the near-term trend.
The 24,400 mark is likely to act as an immediate resistance level, while support is expected in the 24,200 to 24,100 range. Market movement around these levels may influence short-term trading activity during the week.
Lower crude prices offer additional support
International oil prices moved lower in early trade, offering some relief to import-dependent economies such as India. Brent crude, the global benchmark, declined 0.76 per cent to $71.55 a barrel. U.S. West Texas Intermediate crude also fell by about 1 per cent and traded below $69 a barrel.
Lower oil prices can help reduce pressure on India’s import bill and inflation outlook, although currency movements and global demand trends will remain important factors for investors.
Asian markets show mixed trend
Stock markets across Asia presented a mixed picture. Japan’s Nikkei index declined by nearly 1 per cent, while South Korea’s KOSPI dropped almost 2 per cent. Hong Kong’s Hang Seng index, however, traded marginally higher.
Investors are expected to track global market cues, crude oil prices, foreign fund activity and early corporate earnings updates as the week progresses.