Indian markets open flat amid easing oil prices; Sensex opens 201 points higher, Nifty holds above 24,600
Mumbai, August 6
Indian benchmark indices opened on a flat note on Thursday, adjusting for the previous session's closing auction movement, as easing crude oil prices and improving geopolitical sentiment supported investor confidence.
The Sensex opened at 78,782.43 against the previous close of 78,581, gaining 201.43 points or 0.26 per cent, while the Nifty opened at 24,641 compared with its previous close of 24,624.65, up 16.35 points or 0.07 per cent.
At the time of filing this report, the Nifty was trading at 24,639.95, higher by 15.30 points or 0.06 per cent, while the Sensex was at 78,768.81, up 187.81 points or 0.24 per cent.
Market and banking expert Ajay Bagga said the diplomatic tone between the United States and Iran had become "noticeably more constructive", although a final peace agreement was yet to be reached.
"Overnight, the diplomatic tone between Washington and Tehran has turned noticeably more constructive, but we are not yet at a final peace agreement."
"President Trump has publicly said discussions are progressing well, while negotiations--reportedly facilitated through Oman--continue on the framework for reopening the Strait of Hormuz and ending the conflict. However, the most difficult issues remain unresolved, including who controls maritime inspections, shipping rights, and whether Iran can levy transit fees on vessels entering the Gulf," Bagga said.
The Strait of Hormuz is a key global oil shipping route, and optimism over the ongoing talks weighed on crude oil prices, lending support to equity markets.
Sectorally, trading remained mixed in early deals, with auto, FMCG, IT, metal, realty and cement stocks trading in the red. Several broader market indices also remained under pressure.
On the BSE, Titan, Reliance Industries, Tech Mahindra, Eternal, BEL, Asian Paints, Tata Steel, Larsen & Toubro, HCLTech, ITC, Adani Ports and Infosys were among the major gainers. Power Grid, Trent, Maruti Suzuki, Axis Bank, Bharti Airtel and IndiGo were among the top laggards.
On the NSE, Titan, Reliance Industries, Eternal, Cipla, BEL, Asian Paints, Adani Ports, Larsen & Toubro and Eicher Motors led the gainers, while Power Grid, ONGC, HCLTech, Bajaj Auto, Kotak Mahindra Bank, Bajaj Finance, Hindustan Unilever, HDFC Life, ITC, SBI Life and TCS were among the top losers.
In the commodities market, Brent crude traded at around USD 79.26 per barrel, while WTI crude hovered near USD 75 per barrel. Gold was trading at around USD 4,262.62.
Shrikant Chouhan of Kotak Securities said the market was currently exhibiting a range-bound movement. He said short-term support was placed at 24,500-24,450 for the Nifty and 78,200-78,000 for the Sensex, while the key resistance zone stood at 24,700-24,750 and 78,900-79,000, respectively.
He added that a breakout above these resistance levels could trigger fresh upside, whereas a fall below support could drag the indices lower.
Market analyst Vipin Dixena said the market was searching for direction after the recent rally, with investors becoming increasingly selective and favouring fundamentally strong stocks over the broader market.
He noted that while the medium-term trend remained positive, a decisive close above the 24,650 level on the Nifty would be required to confirm fresh bullish momentum, with any dip towards the 24,500 level likely to attract buying interest.
— ANI
Reader Comments
Finally some relief with crude prices coming down! 🇮🇳 The Strait of Hormuz situation was making everyone nervous. Hope this peace talk between US and Iran works out. Our markets need stability more than quick rallies.
Good to see Reliance and Titan leading the gains. But honestly, the market seems to be in a wait-and-watch mode. The support levels mentioned at 24,500 are crucial - if we hold that, it's fine, but these fluctuations are nerve-wracking for small investors like us.
The diplomatic progress between Washington and Tehran is definitely a positive catalyst. Oil at $79 is much better than the $90+ we saw earlier. Indian markets should benefit from this if the trend continues. Though I'd like to see more decisive moves rather than this range-bound trading.
Sensex up 200 points but Nifty barely moved? That's strange. Anyway, with oil prices cooling down, our import bill should reduce. Good for the economy and hopefully for the rupee too. Just hoping the market doesn't give us a surprise like last month 🤞
I appreciate the analysis from the experts, but I wish they'd also talk about how the common person is affected. Petrol prices might come down if crude stays low, which will help everyone. That's what matters to most of us, not just the index movements.
D We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.