Sensex, Nifty Start Marginally Higher, Rising US Yields Keep Investors Cautious

Mumbai: On Friday, September 25, India's major stock indices, the Sensex and Nifty, opened marginally higher. However, skepticism persisted due to increasing US Treasury yields, foreign investor withdrawals, and geopolitical tensions. By 9:24 am, the Sensex was up 0.13 percent at 73,676, and the Nifty had risen 0.09 percent to 23,084.

The broader market mirrored these trends, with the Nifty Midcap 100 gaining 0.03 percent and the Nifty Smallcap 100 rising 0.06 percent. Not all sectors performed equally, with IT, FMCG, consumer durables, and healthcare stocks experiencing declines. The Nifty IT index fell the most, 1.37 percent, while the Nifty Realty led gains at 0.59 percent.

Global factors continued to influence investor sentiment, with US 10-year Treasury yields surpassing 5.20 percent and hovering near multi-year peaks. A stronger dollar and falling crude oil prices below $100 also exerted downward pressure on Indian equities. Geopolitical concerns, particularly concerning US-Iran relations, added to the cautious market outlook.

The Nifty had closed the prior day at 23,063, marking a 1.64 percent drop. Key support levels for the Nifty were identified between 22,800 and 23,000, while resistance was noted at 23,250–23,300. Bank Nifty, which closed 1.96 percent lower at 55,438, had immediate support at 55,000–55,200 and resistance at 55,800–56,000. Asian markets exhibited mixed results, with Japan's Nikkei advancing 1.23 percent and South Korea's Kospi growing 0.9 percent, while Hong Kong's Hang Seng slipped 1.77 percent. Meanwhile, China's Shanghai and Shenzhen indices fell 1.04 percent and 2.34 percent, respectively.