Sensex opens 120 points higher, Nifty flat amid mixed global cues

• Sensex opened 120 points higher, while Nifty was nearly unchanged amid mixed global market signals.

• PSU banks and oil and gas stocks gained, while private banks, IT and chemicals declined.

• Last week’s rally and corporate earnings supported sentiment, but elevated crude prices remained a concern.

Indian equity benchmarks opened little changed on Monday, with gains in public sector banks and oil and gas stocks offset by weakness in private lenders, technology and chemicals.

The Sensex began trading at 74,849.30, rising 120.03 points, or 0.16 per cent. The Nifty opened at 23,150.85, edging up 4.70 points, or 0.02 per cent.

The Nifty PSU Bank index led the advance, gaining more than 1 per cent, followed by the Oil & Gas index, which rose about 0.6 per cent. Private Bank, IT and Chemicals indices fell by up to 1 per cent.

Market analysts said the Nifty’s 2.8 per cent rise last week, alongside encouraging banking results and better-than-expected technology earnings, could help sustain investor confidence.

However, tensions around the Strait of Hormuz and elevated crude prices remained a drag on the outlook. Analysts flagged Brent’s recent climb to $109 a barrel as a potential challenge for Indian equities.

Oil prices eased during the session, although they remained high. Brent traded nearly 2 per cent lower at about $107.76 a barrel, while US West Texas Intermediate fell roughly 1 per cent to $100.43.

Analysts said relatively attractive large-cap valuations and a strengthening rupee had helped improve foreign investor sentiment. They cautioned that sustained buying could prove difficult if crude prices stayed elevated.

Large-cap shares were expected to maintain their relative strength against mid- and small-cap stocks, with September-quarter earnings driving company-specific moves.

Foreign institutional investors bought approximately Rs 1,166 crore of Indian equities on 16 October, ending 15 consecutive sessions of net selling. Domestic institutional investors, meanwhile, recorded net sales of around Rs 3,661 crore, breaking a 45-session buying run.

For the Nifty, analysts identified immediate support at 22,950–23,000 and resistance at 23,250–23,300. Its relative strength index stood at 52.81, above its average of 34.70, while the put-call ratio was 1.08.

Asian markets offered mixed signals. Japan’s Nikkei declined 0.84 per cent, while Hong Kong’s Hang Seng and South Korea’s KOSPI gained up to 0.83 per cent. Indonesia’s Jakarta Composite dropped more than 5 per cent.

With IANS inputs