Indian Stock Market Opens Higher as Crude Oil Falls Below USD 80

Indian equity markets began the week on a positive note, with benchmark indices opening in the green on Monday amid easing crude oil prices, supportive global trends, a strengthening rupee, and stable foreign investment flows. Analysts said investors are closely monitoring developments in West Asia while remaining encouraged by domestic market fundamentals.

Global Cues and Lower Oil Prices Lift Sentiment

The BSE Sensex opened at 77,160.67, rising 357.77 points or 0.47 per cent, while the NSE Nifty 50 gained 93.50 points or 0.39 per cent to reach 24,106.60 in early trade.

Rajesh Palviya, Head of Research at Axis Direct, said global market conditions remained favourable at the start of the week.

"Domestically, GIFT Nifty indicates a positive start, suggesting that Friday's decline may largely remain a healthy corrective move within the broader recovery trend. Asian markets are trading mixed, with strength in Japan and South Korea offset by softer Chinese equities," Palviya said.

GIFT Nifty traded at 24,136.50, while Japan's Nikkei 225 posted strong gains. Hong Kong's Hang Seng futures, however, remained under pressure.

Palviya noted that crude oil prices had stabilised after last week's sharp decline.

"Meanwhile, Brent crude has stabilised near the USD 80 per barrel mark after last week's sharp correction, offering relief for India's inflation and fiscal outlook, although geopolitical developments in the Middle East remain a key monitorable," he added.

At the time of filing, Brent crude was trading at USD 79.55 per barrel, while crude oil stood at USD 75.83. Gold prices were higher at USD 4,176.09.

Technical Levels Suggest Positive Momentum

According to Palviya, the 24,000 mark remains a critical support level for the Nifty.

"Sustaining above this level is likely to keep the positive bias intact, with immediate resistance placed at 24,150-24,200," Palviya stated. "A decisive breakout above this zone could trigger fresh buying interest and short covering, paving the way towards 24,300-24,400."

Shrikant Chouhan, Head of Equity Research at Kotak Securities, also maintained a constructive outlook on the market.

"We are of the view that the short-term market outlook remains positive, and a strategy of buying on dips and selling on rallies would be ideal for traders," Chouhan said. "In the near term, for Nifty, 23,900 and 23,800 would be major support levels. The Sensex levels would be 76,500 and 76,200."

He cautioned that a fall below these support levels could weaken the ongoing uptrend and prompt traders to adopt more defensive strategies.

Rupee Strength and FPI Flows Support Markets

Market experts also pointed to domestic factors such as rupee appreciation and improving foreign investment flows as key sources of resilience.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said lower crude prices suggest markets are not expecting a significant escalation in geopolitical tensions.

"This market signal indicates that a further flare-up in the conflict is unlikely," Vijayakumar said. "However, the situation remains fluid and has to be watched closely."

He added, "The FPI buy figure of Rs 4,859 crore on Friday is due to the FTSE rejig and, therefore, is not indicative of any trend."

Vijayakumar noted that the rupee's appreciation to 94.32 against the US dollar is a positive development likely to continue as capital inflows strengthen.

"The market momentum is now in the mid and small caps assisted by superior earnings growth potential. Bank Nifty is fundamentally strong and deserves calibrated accumulation," Vijayakumar added.

(With inputs from ANI)