The opened higher on Friday, September 18, with the Sensex rising more than 100 points and the Nifty moving above 23,300 as easing crude oil prices and gains in global markets lifted investor sentiment. The market remained cautious, however, with elevated oil prices, continued foreign selling and geopolitical uncertainty keeping gains in check.
The Sensex opened in positive territory and gained around 260 points in early trade, trading near 74,575. The Nifty 50 also moved higher and held above 23,300 after ending Thursday at 23,270.60.
The recovery comes after a mixed session on Thursday. The Sensex ended marginally lower at 74,314.59, falling 21.86 points, while the Nifty gained 53 points to close at 23,270.60. The Nifty has now posted gains in two consecutive sessions.
Investors are closely tracking movements in crude oil, global equity markets and foreign institutional flows as they assess the direction of the Indian stock market.
A decline in crude oil prices offered some relief to Indian equities. Brent crude fell around 1% to $103.77 a barrel, while West Texas Intermediate crude slipped to about $100.88.
Oil prices have declined for three consecutive sessions, although they remain above the psychologically important $100-a-barrel level. The movement is particularly important for India because the country relies heavily on imports to meet its crude oil requirements.
Lower crude prices can help reduce pressure on India’s import bill and inflation while supporting the margins of sectors that are sensitive to fuel costs. A sustained rise in oil prices, on the other hand, could increase concerns over inflation and the country’s trade deficit.
Geopolitical developments in the Middle East remain an important factor for the energy market. Any disruption to oil supplies could lead to another sharp rise in crude prices and add volatility to global markets.
Indian equities also received support from a strong performance on Wall Street. US markets ended sharply higher in the previous session, with the Nasdaq Composite gaining 1.69%. The S&P 500 rose 1.14%, while the Dow Jones Industrial Average advanced 0.62%.
Asian markets were also largely higher in early Friday trading. The positive global cues helped improve risk appetite and provided support to domestic equities at the start of the session.
However, investors remain watchful of monetary policy in the United States. Higher interest rates can influence global capital flows and make emerging-market assets less attractive to international investors.
Foreign institutional investors remained net sellers in Indian equities on Thursday. They sold shares worth around ₹3,209 crore in the cash market.
Domestic institutional investors partly offset the selling, purchasing equities worth about ₹3,618 crore. The contrasting flows show the continuing role of domestic investors in supporting the market when overseas funds reduce their exposure.
Foreign fund flows have remained an important market trigger as investors balance India’s growth prospects against global interest rates, currency movements and geopolitical risks.
Several large-cap stocks were active in the market, with financial, automobile, pharmaceutical and defence counters among those attracting investor attention.
HDFC Life was among the strongest performers, rising 5.05%. Tata Motors Passenger Vehicles gained 4.49%, while SBI Life Insurance advanced 4.06%. Dr Reddy’s Laboratories climbed 3.07% and Bharat Electronics rose 2.51%.
On the losing side, ONGC declined 1.85%. Titan Company fell 1.38%, while HDFC Bank dropped 1.18%. Hindustan Unilever and Coal India each declined around 1%.
The movement in individual stocks is also being driven by company-specific developments, including new orders, business announcements and sector-related developments.
The Nifty’s move above 23,300 has brought the index closer to an important technical zone. The 23,300-23,400 range is being closely watched by traders as a near-term resistance area.
A sustained move above this range could bring the 23,500-23,600 levels into focus. On the downside, the 23,100-23,070 region remains an important support area.
The Sensex is also attempting to recover after recent volatility. Investors are likely to monitor heavyweight stocks because movements in major index constituents can have a significant impact on the broader market.
Despite the positive opening, the market continues to face several uncertainties. Crude oil remains expensive, foreign investors are continuing to withdraw funds and geopolitical tensions are creating the possibility of sudden swings in global markets.
The rupee, bond yields and movements in US markets will also remain important for domestic investors. Any sharp change in global risk sentiment could quickly influence Indian equities.
The immediate focus is now on whether the Nifty can sustain its move above 23,300 and whether the Sensex can extend its early gains. Trading activity in heavyweight stocks, crude oil movements and institutional buying and selling are expected to shape market direction through the day.
The opening gains indicate improving sentiment, but investors remain cautious as several external factors continue to influence the Indian stock market. With the Nifty approaching the 23,400 resistance zone, Friday’s session could provide further clues about the market’s near-term direction.