Business News | Sensex, Nifty Open Flat as High Crude Oil Prices Offset Banking Stocks Gains
Get latest articles and stories on Business at LatestLY. The stock markets in the country opened largely flat on Monday as elevated crude oil prices amid escalating tensions in the Strait of Hormuz offset support from recent gains in the market and positive corporate earnings.
Mumbai (Maharashtra) [India], October 19 (ANI): The stock markets in the country opened largely flat on Monday as elevated crude oil prices amid escalating tensions in the Strait of Hormuz offset support from recent gains in the market and positive corporate earnings.
The NSE Nifty 50 index opened at 23,150.85, up 4.70 points or 0.02 per cent, while the BSE Sensex opened at 74,849.30, gaining 120.03 points or 0.16 per cent.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the momentum from last week's market rally and encouraging results from major companies could help markets remain resilient. However, rising geopolitical tensions and high crude oil prices remain key concerns for investors.
“The momentum created by the 2.8 per cent surge in Nifty last week and the good results from the banking majors after the better-than-expected results from the leading IT companies, have the potential to keep the market resilient. However, the escalation of tensions in Hormuz and the consequent surge in Brent crude to USD 109 will act as a strong headwind to the market”.
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He added, “Even though the attractive valuations of the large-caps and the appreciation of the rupee have turned the stance of FIIs towards India a bit positive, it is unlikely to sustain, given the high crude price. Large-caps outperforming the mid-and small-caps is a rational trend, and this is likely to sustain, going forward. The market actions this week are likely to be stock-specific in response to the Q2 results.”
Brent crude prices moderated marginally on Monday, declining 1.93 per cent to USD 107.73 per barrel at the time of reporting. However, prices remained elevated compared with their long-term average, keeping concerns over the impact of expensive oil on the market in focus.
Sectoral indices on the NSE showed mixed movements in the opening session. Nifty Auto gained 0.29 per cent, Nifty Metal rose 0.17 per cent and Nifty Pharma advanced 0.31 per cent.
Nifty PSU Bank rose by more than 2 per cent, while the Nifty Oil and Gas index gained 0.78 per cent.
On the other hand, the Nifty IT index fell 1.26 per cent, while Nifty FMCG declined 0.28 per cent. The Nifty Private Bank index also fell by more than 1 per cent.
Gold prices rose 0.29 per cent to Rs 1,48,350 per 10 grams for 24-karat gold, while silver prices increased 0.62 per cent to Rs 2,12,486 per kg at the time of reporting.
Investors are also tracking the second-quarter earnings announcements scheduled for Monday. Bajaj Finance, UltraTech Cement, Hindustan Zinc, Union Bank of India, Just Dial and Indian Renewable Energy Development Agency are among the major companies set to announce their results.
According to Vijayakumar, market movements during the week are likely to be driven by individual stocks in response to quarterly earnings.
Asian markets showed a mixed trend in the opening session on Monday. Japan's Nikkei 225 index declined 0.86 per cent to 64,760, while Taiwan's Weighted Index fell 1.25 per cent to 46,523. Indonesia's Jakarta Composite lost 5 per cent to 4,917.
In contrast, Singapore's Straits Times index rose 0.25 per cent to 5,428. Hong Kong's Hang Seng index gained 0.51 per cent to 24,186, while South Korea's KOSPI advanced 0.66 per cent to 5,705.
The mixed trend across Asian markets, elevated crude oil prices and the focus on corporate earnings kept the domestic market's opening subdued, despite support from recent gains and strength in select banking stocks. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)