Indian stock markets opened in the green on Monday as investors became confident on the back of favorable assembly election results for the ruling party.
The Nifty 50 index opened at 25,065.80 points, up 52.65 points or 0.21%. The Sensex opened at 81,954.58 points, rising by 319.77 points or 0.39%.
Markets had little reason to extend gains, experts said, ahead of the monetary policy announcement by the Reserve Bank of India later in the day. However, most investors expect the RBI to leave the policy rates untouched.
According to Vinod Nair, Head of Research at Geojit Financial Services, “After recent corrections, India is getting support at the 25,800 level for Nifty 50. The good performance of the ruling party in the state elections with a contrary exit poll has brought optimism to the domestic markets. No rate cuts are expected, but the investors are expecting a change in the stance of the RBI to neutral. Investors would also look forward to the coming Q2 earnings that would improve marginally on a quarter-on-quarter basis.”
On the sectoral front, the Nifty PSU Bank index was the top gainer. Among the indices on the National Stock Exchange. Rest all indices opened green.
On the Nifty 50 front, 38 stocks opened in the green, while 11 declined and 1 remained unchanged.
According to Soni Patnaik, AVP and Derivatives Research Analyst at JM Financial Services, “Nifty bounced back from the expected support at 24,750 and closed just above the 25,000 mark. With FIIs reducing their long positions to 43%, Nifty is expected to face resistance around the 25,100 to 25,150 range. If short covering continues, it could push the index higher. However, if the critical support at 24,750 breaks, selling pressure may increase, targeting 24,500 or 24,300,” he said.
Other Asian markets meanwhile had mixed trends on Monday. Japan’s Nikkei 225 rose 0.83%, while the Shanghai Composite plunged 5.61 percent. And Hong Kong’s Hang Seng index dropped 3.04 percent.
ANI
