Sensex Opens 413 Points Higher Amid Continued Middle East Tensions

Mumbai: Indian stock markets began the trading week on a positive note on Monday, as favorable international signals lifted investor sentiment after a prolonged period of decline. The Sensex opened at 72,340.95, climbing by more than 400 points, or 0.6 percent. The Nifty commenced at 22,532.40, surging over 100 points, or 0.49 percent.

Analysts anticipate the Sensex support level to be between 71,000 and 71,200, while the Nifty may rebound towards 22,800. Banks led the market gains, with the Nifty PSU Bank, Nifty Media, and Nifty Metal indices posting gains of up to 1 percent, while the Nifty Realty climbed 0.93 percent. Other sectors such as Nifty Chemicals, Nifty FMCG, and Nifty Oil and Gas also experienced gains ranging from 0.8 percent to 0.85 percent.

While private bank and consumer durables stocks also witnessed a rise, indices related to IT, automobiles, and pharmaceuticals remained relatively flat. However, healthcare shares experienced a slight decline, with Nifty 500 Healthcare falling by 0.07 percent and Nifty Healthcare declining by 0.12 percent. Market experts believe that the recent correction could provide an opportunity for a market recovery.

They note that large-cap share valuations have become more attractive, potentially aiding the market's resilience against downward pressures. September's robust automobile sales indicate that domestic demand remains robust. Nonetheless, concerns such as expensive crude oil, elevated US bond yields, and persistent foreign investor selling continue to cast a shadow over the Indian stock market outlook.

RBI policy decision looms large, with experts expecting a 25-basis-point rate hike from the Reserve Bank of India on Wednesday. Market participants have largely incorporated this expectation, suggesting that banks could benefit from increased rates on floating-rate loans. While foreign institutional investors offloaded shares worth Rs 9,484 crore in the previous session, domestic institutional investors partially offset the downside by buying equities worth Rs 10,041 crore.

The price of Brent crude oil saw a minor dip of nearly 1 percent to USD 101.27 per barrel, providing some respite to market sentiment as investors digested global developments and policy cues.