Stock markets started the new week on the front foot as the Nifty and Sensex opened the week in the green. The Nifty index added 59.20 points to open at 25,023, while BSE Sensex opened at 81,576.93, higher by 195 points or 0.24% end.
Experts said that the decline in geopolitical risks and the impacts of the Chinese stimulus were aiding markets. However, experts have cautioned that no immediate relief may be expected since global markets are still seeing volatility due to the US presidential election approaching.
Ajay Bagga, a banking and market expert explained that the Chinese stimulus impact is fading and Indian markets are not benefiting much from it for now. He said that this week, upcoming earnings reports will be a key driver for the Indian markets. He further added that geopolitical risks have reduced slightly after a relatively calm weekend in the Middle East.
Looking ahead, Bagga said, “October is following the historical performance of the US presidential cycle. We can expect more volatility as the US election approaches. After the vote on November 5th, we might see a relief rally.”
In the National Stock Exchange, all the sectoral indices were green. The Nifty Media index was leading because, in the opening session, it was up 0.55%. Other sectors performed well, but out of those, the media outshone them.
Today, many leading companies are announcing quarterly earnings, such as Reliance Industries, HCL Technologies, Angel One, and Alok Industries. Each report will be closely watched by investors.
Soni Patnaik, AVP of Derivatives Research at JM Financial Services, said, “The Nifty is trading in a range of 24,800-25,200. The FII’s long positions are at 36 percent, which indicates some selling pressure on hitting resistance levels.” He said a short-covering rally in the Nifty will occur only if it breaks above the 25,300 level. On the downside, breaking the 24,800 or 24,750 levels could trigger a fresh round of selling, pushing the index further down to the 24,500-24,300 range.
Elsewhere in Asia, Hong Kong’s Hang Seng index fell 1.21% while Taiwan’s Taiwan Weighted index lost a little. However, its peer, South Korea’s KOSPI index was up 1% during the period.
ANI
