Sensex, Nifty rise in early trade on global optimism

Indian equity benchmarks opened on a firm note on Monday, supported by positive global signals and broad-based buying across key sectors.

The 30-share BSE Sensex advanced around 0.6 per cent to trade at 77,121.97 in early deals, gaining roughly 457 points. The broader Nifty 50 also moved higher, rising 150 points, or 0.62 per cent, to 24,047.

Markets were buoyed by gains in sectors such as real estate, pharmaceuticals, information technology, automobiles and banking. Sectoral indices reflected the momentum, with Nifty Realty and Nifty Pharma leading the rally, followed by IT, auto and PSU banking stocks.

In contrast, some financial stocks, including Axis Bank, Shriram Finance and Bajaj Finance, faced selling pressure and featured among the early laggards.

Broader markets outperformed the benchmarks, with midcap and smallcap indices climbing up to 1 per cent. Meanwhile, the India VIX, a gauge of market volatility, eased more than 2 per cent to 19.24, indicating relatively calmer investor sentiment.

Analysts noted that the Nifty remains in a largely sideways to slightly negative trend, with immediate support seen in the 23,800–23,900 range and resistance near 24,200. They cautioned that a decisive breakout above resistance levels would be needed for sustained upside.

Domestic sentiment has been aided by developments such as the India–New Zealand free trade agreement and ongoing deal activity, including Sun Pharma’s acquisition of Organon assets. However, global factors continue to play a crucial role.

Investors are closely monitoring the outcome of the upcoming US Federal Reserve policy meeting, key macroeconomic indicators and earnings from major global technology firms, all of which are expected to influence market direction.

Rising crude oil prices remain a concern, with Brent crude trading above $107 per barrel and US West Texas Intermediate also posting sharp gains. Persistent geopolitical tensions, particularly in the Middle East, and recent weakness in the rupee may keep volatility elevated in the near term.

Elsewhere in Asia, markets showed a mixed trend. Japan’s Nikkei surged nearly 2 per cent, while South Korea’s KOSPI also recorded strong gains. Hong Kong’s Hang Seng edged marginally higher.

On Wall Street, US indices ended the previous session in positive territory, with the S&P 500 rising 0.80 per cent and the Nasdaq gaining 1.63 per cent, lending further support to global risk sentiment.

With IANS inputs