Mumbai, Aug 24: Indian equity markets opened on a positive note on Monday, supported by a decline in crude oil prices and continued buying by domestic institutional investors. The gains remained limited as investors monitored geopolitical developments and awaited further clarity on possible US measures against Iran.
The Nifty 50 opened at 24,285.05, rising 33.05 points, or 0.14 per cent, while the Sensex began trading at 77,629.56, up 88.73 points, or 0.11 per cent.
Metal stocks emerged as the leading gainers during early trading, with the Nifty Metal index advancing nearly 1 per cent. Media, oil and gas, and information technology stocks also moved higher. Auto, private banking and financial services shares were among the other sectors showing strength.
On the other hand, healthcare and pharmaceutical stocks declined around 0.5 per cent each. Consumer durables, real estate and FMCG stocks also traded under pressure.
Crude oil prices declined by more than 2 per cent amid expectations surrounding possible US sanctions on Iran. Brent crude was trading near $92 a barrel, while West Texas Intermediate crude remained below $85 a barrel.
The movement in crude prices remains important for Indian markets because sustained increases in energy costs could affect inflation, corporate margins and the country’s import bill.
Domestic institutional investors continued to provide support to the market. On August 21, they purchased equities worth around Rs 2,124 crore, extending their buying streak to nine consecutive sessions. Foreign institutional investors remained net sellers, offloading shares worth approximately Rs 543 crore for a second straight session.
Analysts expect the Nifty to remain range-bound in the near term, with the 24,200–24,600 range likely to remain important. The 24,060–24,000 zone is being closely watched as a key support area. A sustained hold above this level could allow the index to move towards 24,317–24,380 and subsequently 24,400–24,545.
Market volatility could increase ahead of Tuesday’s futures and options expiry, while investors are also expected to track developments in global markets.
Asian equities traded lower as investors prepared for several important events during the week, including Nvidia’s earnings announcement and the US Federal Reserve’s annual symposium.
Despite the cautious global environment, investors continued to show interest in companies with strong earnings and favourable business outlooks. Healthcare, contract development and manufacturing, precision engineering and power infrastructure remained among the areas attracting selective buying.
The domestic market continues to receive fundamental support from economic resilience and expectations of improving corporate earnings. However, geopolitical risks, crude oil movements and elevated valuations are expected to keep investors cautious.
Indian equities are therefore likely to remain sensitive to global developments in the coming sessions, with institutional flows, oil prices and upcoming international events expected to influence market direction.