Sensex Opens 299 Points Higher But Falls 400 Points Within An Hour, Softer Oil Lifts Nifty Above 22,590
Mumbai: Indian equity markets opened higher on October 12, supported by positive Asian cues and softer crude oil prices. Buying across most sectors lifted benchmarks, although analysts cautioned that foreign investor selling and elevated global bond yields remained challenges. The Sensex opened at 72,771.32, gaining 298.99 points, or 0.41 per cent, but could not hold the gain for long. At 10.00…
Mumbai: Indian equity markets experienced a rollercoaster opening on October 12, starting off higher before falling sharply within an hour. As global crude oil prices declined, buying across various sectors propelled benchmarks, enabling the Sensex to open at 72,771.32, up 298.99 points or 0.41 per cent. However, the index could not maintain the upward momentum and had retreated to 72,390 by 10.00 AM, losing 400 points.
The Nifty began at 22,593.20, ascending 72.75 points or 0.32 per cent. Media, automobile, and chemicals sectors spearheaded the buying spree, with their indices surging up to 1 per cent. Bulls returned to Dalal Street ahead of Navaratri, with the Sensex surging 879 points and the Nifty crossing 22,500. Gains were observed across sectors such as realty, oil and gas, cement, metals, and IT, with indices advancing between 0.64 per cent and 0.81 per cent.
However, other sectors recorded smaller gains, while the Nifty PSU Bank index dipped by 0.01 per cent. Analysts pointed out that the broadly positive opening was fueled by positive Asian cues and softer crude oil prices. The market experts cautioned that foreign investor selling and high global bond yields remained challenges. Crude oil and foreign flows were identified as key factors influencing Indian equities.
Despite a sharp decline in crude prices due to expectations of additional Russian supplies, high crude prices and US bond yields are expected to continue influencing Indian equities. Foreign institutional investors might continue selling, while domestic investors absorb those outflows. The outlook for domestic growth, with an estimated FY27 GDP growth of 7.1 per cent and improving corporate profitability, offered domestic support.
However, cautiousness prevailed ahead of corporate earnings, which could test elevated technology valuations. Technical levels to watch included a potential move towards 22,800–23,200, with a critical downside level noted at 22,295, Friday's reaction low.
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