New Delhi: Indian benchmark indices opened higher on Monday, August 24, with the Sensex gaining more than 200 points and the Nifty 50 moving above the 24,300 mark in early trade. Buying in information technology stocks, led by Infosys and HCL Technologies, supported the market, although elevated crude oil prices and geopolitical tensions limited the gains.
At around 9:26 am, the BSE Sensex was up 206.06 points, or 0.27%, at 77,746.89. The index opened at 77,629.56 and touched an early high of 77,789.40.
The Nifty 50 rose 43.40 points, or 0.18%, to 24,295.40, after opening at 24,285.05.
IT stocks lead Sensex gains
Information technology stocks emerged as some of the strongest performers in early trading.
Infosys led the gains among Sensex companies, rising 1.85%. HCL Technologies followed with a gain of 1.14%.
Tata Steel also advanced 1.12%, while HDFC Bank, Tech Mahindra and TCS gained 0.68%, 0.63% and 0.61%, respectively.
Other stocks trading higher included IndiGo, Kotak Mahindra Bank, ICICI Bank, Hindustan Unilever, UltraTech Cement and NTPC.
The strength in major IT stocks provided support to the benchmark indices despite weakness in several other sectors.
Asian Paints, Titan among early losers
Not all Sensex stocks opened in positive territory.
Asian Paints was the biggest loser among Sensex constituents, declining 0.42%. Titan fell 0.36%.
BEL, Adani Ports and Bharti Airtel also traded lower, falling 0.29%, 0.27% and 0.21%, respectively.
Bajaj Finserv, Bajaj Finance, Sun Pharma, Eternal, Power Grid and Mahindra & Mahindra were among the other stocks in the red.
Broader market opens positive
The broader market also began the session with modest gains.
The Nifty 100 rose 0.02%, while the Nifty 200 gained 0.03% and the Nifty 500 advanced 0.07%.
Midcap stocks traded slightly higher, with the Nifty Midcap 50 gaining 0.11% and the Nifty Midcap 100 rising 0.10%.
The Nifty Smallcap 100 was among the stronger performers, climbing 0.69% in early trade.
However, the rise in India VIX suggested that investors remained cautious. The volatility index increased 4.09%, signalling greater uncertainty in the market.
Sectoral indices show mixed trend
Sectoral performance remained mixed during the opening session.
The Nifty Private Bank index gained 0.51%, while Nifty Realty rose 0.40%. Nifty Financial Services 25/50 gained 0.23%, and Nifty Midcap Financial Services advanced 0.61%.
Consumer durables also traded higher, with the relevant index gaining 0.19%.
On the other hand, Nifty FMCG declined 0.74%, making it one of the biggest sectoral drags.
Nifty Auto fell 0.60%, while Nifty Media declined 0.54%. Nifty IT itself was down 0.46% despite gains in several heavyweight IT stocks, while Nifty Pharma and Nifty Healthcare also traded lower.
Crude oil remains a key concern
Crude oil prices continued to be an important factor for Indian investors.
At the time of the market opening, Brent crude was trading at $93.13 a barrel, while WTI crude stood at $85.69 a barrel.
Although both benchmarks were lower in early trade, crude remained elevated amid continuing geopolitical uncertainty.
Higher oil prices can be a concern for India because the country relies heavily on imported crude. A prolonged rise in energy prices can put pressure on inflation, the current account and corporate margins.
This has made movements in crude oil particularly important for the Indian equity market.
Geopolitical tensions limit market upside
Investors were also keeping an eye on geopolitical developments, particularly tensions in West Asia and the ongoing Russia-Ukraine conflict.
These developments have the potential to affect energy prices, global risk sentiment and capital flows into emerging markets.
As a result, the early gains in Indian equities remained relatively modest despite buying in several large-cap stocks.
Nifty may remain range-bound
Geojit Investments Chief Investment Strategist Dr V K Vijayakumar expects the Nifty to remain within the 24,200-24,600 range in the near term.
According to his assessment, the Indian market continues to receive fundamental support from the resilience of the domestic economy and improving earnings growth.
However, a sustained move above 24,600 could remain difficult because of elevated crude prices and geopolitical risks.
He also cautioned that rallies could attract selling at higher levels in the current environment.
Infosys emerges as early market star
Infosys was particularly notable during the opening session, with the stock gaining nearly 2%.
The move provided support to the Sensex because of the company’s significant weight in the benchmark.
Other large IT companies, including HCL Technologies, TCS and Tech Mahindra, also traded higher, indicating buying interest across several major technology stocks.
The performance comes after IT stocks had already shown strength in recent sessions, making the sector an important area for investors to watch.
What investors should watch
The market’s direction during the rest of the session is likely to depend on several factors.
Investors will track movements in crude oil, developments in global markets and geopolitical news. Domestic institutional and foreign investor activity will also remain important.
On the technical side, the 24,600 level on the Nifty is being watched as an important hurdle, while 24,200 could provide near-term support according to the market view cited in the report.
Any sharp movement in oil prices could also influence the performance of oil-sensitive sectors and the broader market.
Market outlook remains cautious
Monday’s opening suggests that investors continue to find opportunities in select sectors despite the broader uncertainty.
The gains in IT stocks and financial companies helped the benchmark indices open higher, while weakness in FMCG, auto and other sectors kept the advance contained.
With crude oil still elevated and geopolitical risks unresolved, analysts expect volatility to remain a feature of the market.
For investors, the current environment could therefore favour selective stock-specific buying rather than broad-based risk-taking.
Conclusion
The Indian stock market started Monday’s session on a positive note, with the Sensex rising more than 200 points and the Nifty moving above 24,300 in early trade. IT stocks were among the biggest contributors, with Infosys rising 1.85% and HCL Technologies gaining 1.14%.
However, the rally remained measured as elevated crude oil prices and geopolitical tensions continued to weigh on investor sentiment.
With the Nifty’s near-term range seen at 24,200-24,600, investors are likely to closely monitor crude prices, global developments and sector-specific momentum before taking larger positions.