Nifty edges higher at open; IT and Pharma drag, metals lead

The Sensex and Nifty indices opened higher on Monday morning, gaining 224 points and 56 points respectively. IT and pharma companies led the Nifty gains, with Infosys, Hindalco, and HCL Technologies posting increases of 1.71%, 1.48%, and 1.42% respectively. On the losing side, Cipla, Apollo Hospitals, Grasim, Eternal, and Titan experienced declines of 1.35%, 0.94%, 0.49%, 0.44%, and 0.43% respectively.

The positive start was attributed to a firm Nifty reading of approximately 24,383 points. Technical analysts noted that the index held above its rising short-term trendline and 24,000-24,050 zone, but the RSI remained neutral and the index stayed below its 50-day moving average. Global concerns, such as U.S. federal debt surpassing $40 trillion and geopolitical tensions in West Asia, affected the market sentiment.

Crude oil prices remained elevated near $93 a barrel, impacting sectors like oil marketing companies, paints, aviation, and autos. Domestic institutional investors continued their buying streak, with DIIs purchasing equities worth ₹2,124 crore and FIIs remaining net sellers. Analysts cautioned about the impact of elevated crude prices and geopolitical tensions on market recovery.