Sensex, Nifty open higher as crude oil prices fall by up to 2%

Indian equity benchmarks opened modestly higher on Monday as crude oil prices fell by up to 2 per cent, offering some relief to markets following two consecutive weeks of losses.

The Nifty began trading at 24,285.05, gaining 33.05 points, or 0.14 per cent. The Sensex opened 88.73 points, or 0.11 per cent, higher at 77,629.56.

Metal shares led the sectoral gains, with the Nifty Metal index advancing nearly 1 per cent. The media index rose 0.72 per cent, followed by oil and gas at 0.59 per cent and information technology at 0.4 per cent.

Automobile, private banking and financial services shares also traded in positive territory during the opening session.

Healthcare and pharmaceutical stocks moved in the opposite direction, with their respective indices falling by about 0.5 per cent. Consumer durables, real estate and fast-moving consumer goods shares also declined.

Analysts expect the Nifty to trade within a range of 24,200 to 24,600 in the near term. They said the strength of the domestic economy and improving corporate earnings could support the market, but geopolitical tensions and still-elevated oil prices could restrict gains.

Brent crude was trading near $92 a barrel after falling more than 2 per cent, while West Texas Intermediate slipped below $85. Investors were awaiting details of possible new US sanctions against Iran, although Tehran has played down the prospect of tighter economic measures.

Market experts said companies reporting robust earnings and issuing favourable guidance continued to attract investor interest. Contract development and manufacturing, healthcare, precision engineering and power infrastructure were among the segments witnessing buying activity.

Analysts, however, advised investors against pursuing stocks trading at stretched valuations.

On the technical front, a weekly hammer formation on the Nifty reinforced important support levels and kept the possibility of a reversal intact. Analysts said the index could advance towards 24,317-24,380 and later 24,400-24,545 if the support zone between 24,000 and 24,060 remained intact.

Market volatility could increase ahead of Tuesday’s futures and options expiry.

In the previous trading session on 21 August, domestic institutional investors extended their buying run to nine sessions, purchasing equities worth Rs 2,124 crore. Foreign institutional investors remained net sellers for a second session and sold shares worth Rs 543 crore.

Elsewhere in Asia, equity markets declined ahead of Nvidia’s earnings and the US Federal Reserve’s annual symposium.

With IANS inputs