Key Points

The NSE Nifty 50 index opened at 24,691.95, registering a gain of 57.05 points or 0.23 per cent, while the BSE Sensex began the day at 80,510.39, rising by 145.45 points or 0.18 per cent.

Despite the positive opening, experts noted that market sentiment continues to remain cautious due to global uncertainties and sectoral headwinds.

Vinod Nair, Head of Research at Geojit Investments, said the domestic market had ended a volatile session on a flat note on Monday, reflecting cautious investor behaviour ahead of a holiday-led truncated week and continued FII selling.

He added, "Lack of clarity in the US-India trade deal and prolonging pressure on IT & pharma indices are near-term concerns for the market. Investors await the RBI policy outcome this week; the central bank is expected to keep the rates unchanged to contain volatility in the rupee. The supportive fiscal measures and a stronger demand outlook for H2FY26 may lead the central bank to upgrade its FY26 GDP growth forecast."

Broader market indices also mirrored the cautious optimism. The Nifty 100 gained 0.26 per cent, Nifty Smallcap 100 rose by 0.20 per cent, and Nifty Midcap 100 was up by 0.31 per cent.

Among the sectoral indices on the NSE, Nifty Auto advanced 0.21 per cent, Nifty IT climbed 0.33 per cent, while Nifty Media slipped 0.60 per cent. Analysts said most indices were attempting to recover from oversold levels.

In early trade, the top gainers on the Nifty 50 included Titan, Asian Paint, Power Grid, Hindalco and Cipla. On the other hand, the laggards were Undigo, HDFCLife, ITC, Eternal (Zomato), Tata Motors and Bharti Airtel.

Providing a global perspective, Vikram Kasat, Head Advisory at PL Capital, noted that the US market had calmed concerns around the October 1 federal government funding deadline.

He stated "The payrolls numbers are not necessarily all that meaningful from a long-term investment point of view, but we have to talk about it because the US market is so focused on it as the weakening labor market is the reason for the Fed to ease monetary policy and cut rates".

Kasat added that the Nifty has fallen for seven straight trading sessions, and the decline may continue unless the index registers a positive daily close.

He highlighted that in case of a pullback, the 20HMA and 40HEMA at 24,807 and 24,923, respectively, would serve as key resistance levels where selling pressure could re-emerge.

Overall, while the markets opened on a positive note, caution prevails with investors closely monitoring global economic cues, sectoral performance, and the upcoming RBI policy announcement.

- ANI