Sensex gains 176 points, Nifty above 24,300 as Indian markets open in green
New Delhi, July 6
Indian markets open in green on Monday as domestic equity benchmarks trade higher at the opening bell. The BSE Sensex gained 176.99 points, or 0.23 per cent, to reach 77,940.90, while the Nifty 50 rose by 36.00 points, or 0.15 per cent, to trade at 24,306.85.
The positive start followed mixed trends across Asian peers, where the GIFT Nifty traded at 24,365.50, and the Hang Seng advanced to 23,476.00.
Minor positive movements are also seen in the Shanghai Composite at 4,046.71 and Thailand's SET Composite at 1,612.30.
On the other hand, South Korea's KOSPI showed the sharpest decline, dropping to 7,933.28, closely followed by Japan's Nikkei 225, Taiwan Weighted, Singapore's Straits Times, and the Jakarta Composite.
The Indian primary market also sees a substantial wave of capital raising. Institutional promoters and private equity players utilize mega public issues and massive Offers for Sale (OFS) to monetize current valuations.
Ajay Bagga, banking and market expert, said, "India remains a buy-on-dips market, with the Nifty 200EMA a key resistance, which once pierced could lead to a sustainable rally after years of underperformance. Sectors that look attractive are financials, pharma, telecom, real estate and defence."
The commodities segment reflected a downward movement. At the time of filing, Brent Crude traded lower at USD 71.74 per barrel, down by 0.51 per cent; Crude oil sat at USD 68.44 per barrel, down by 0.47 per cent; and Gold registered a minor drop to USD 4,165.62, down by 0.11 per cent.
"To address high structural oil prices, seven core OPEC+ nations (led by Saudi Arabia and Russia) have enacted their second consecutive monthly production adjustment, increasing July output quotas by 188,000 barrels per day (bpd)," Bagga noted.
"While the Strait of Hormuz experiences tight regulatory and security pressures, the actual movement of physical barrels is restricted. If or when shipping tensions ease, the market could shift rapidly from an artificial shortage to a physical surplus," Bagga added.
Meanwhile, global commodity trends remain highly sensitive to macroeconomic indicators from the United States, particularly labor data and central bank policy expectations.
Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, said, "Gold prices edged higher as a weaker US dollar and softer-than-expected US labor market data prompted investors to reduce expectations of a Federal Reserve interest rate hike this year. The weaker nonfarm payrolls and unemployment data released last week eased concerns that the Fed would need to tighten monetary policy further, providing support to bullion after months of pressure from elevated rate expectations."
Modi mentioned that gains remained limited as inflation continues to stay above the Fed's target, keeping policymakers cautious about easing financial conditions.
In the US markets the Dow Jones Futures stood at 52,841.29, showing a decline of 0.11 per cent. Meanwhile, the S&P 500 stood relatively flat at 7,483.24. At the same time, the Nasdaq experienced a more notable drop, standing at 25,832.67, representing a dip of 0.80 per cent.
"Focus this week will remain on the Fed minutes, U.S. inflation expectations, and speeches from Federal Reserve officials for further guidance on the interest rate outlook and the direction of gold prices. Market could see some volatility after Friday's US Independence Day holiday," Modi noted.
— ANI
Reader Comments
Interesting to see the divergence in Asian markets - Seoul and Tokyo falling while Shanghai and Hong Kong are up. India seems to be bucking the trend somewhat. I'm curious about the impact of OPEC+ production adjustments on our inflation. Crude at $71 is still uncomfortably high for India's import bill.
As a long-term investor, I appreciate the "buy-on-dips" strategy mentioned by Ajay Bagga. Financials and pharma look promising, but I'm not fully convinced about defence stocks yet. The government's focus on infrastructure is good, but execution needs to improve for sustainable growth. Let's hope this rally has legs! 📈
Good analysis on gold from Manav Modi. The softer US jobs data is clearly helping precious metals. But I wonder - is this just a temporary reprieve? With inflation still above Fed's target, we could see more volatility. The Strait of Hormuz situation is a wildcard for oil prices. Indian markets might remain range-bound for now.
It's encouraging to see Indian equity markets showing resilience despite global headwinds. The IPO wave shows strong investor confidence. However, I wish the article had focused more on domestic factors like retail participation and FII flows. Still, a green start is always welcome! 🇮🇳
Moderate gain in line with what we're seeing globally. The Nifty 200EMA point is interesting - if it breaks, we could see a meaningful rally. But I'm more concerned about the crude oil situation. $71 is manageable, but any spike due to geopolitical tensions could pressure our fiscal deficit. The OPEC+ output
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