Sensex, Nifty open higher on easing crude, Nvidia cues but soon turn negative in early trade

MUMBAI: Indian benchmark indices opened higher on Thursday, supported by easing crude prices and stronger global technology cues following Nvidia’s results, but soon slipped into negative territory, with auto and cement stocks coming under pressure.

Both indices opened with a gap-up. The Nifty opened at 24,277.60 and was trading at around 24,194.40, down 13.35 points or 0.06 per cent from the previous close of 24,207.75 at the time of reporting. The Sensex opened at 77,576.76 and was trading at 77,452.09, down 20.85 points or 0.03 per cent from the previous close of 77,472.94 at the same time.

Most broad-market indices traded in positive territory. Sectorally, Nifty Auto, Financial Services, FMCG, Cement and PSU Bank indices traded in the red during early morning trade.

On the NSE, Bajaj Finance, Tech Mahindra, BEL, Eternal, ONGC, Tata Steel, Infosys, Reliance, Cipla, Adani Ports and Trent, among others, were the top gainers, while HDFC Bank, Hindalco, Grasim, Power Grid, Axis Bank, Coal India, TCS and Maruti, among others, were the top losers.

On the BSE, Tech Mahindra, Bajaj Finance, Kotak Bank, ICICI Bank, BEL and Eternal, among others, were the top gainers, while HDFC Bank, Power Grid, Hindalco, TCS, Maruti and IndiGo, among others, were the top losers during early morning trade.

In the commodity market, Brent crude was trading at around USD 87.39 per barrel, while crude oil was trading at around USD 81.82 per barrel at the time of reporting.

Today’s opening is “encouraging”, according to market analyst Vipin Dixena, with the Nifty opening on a positive note, supported by easing crude prices and stronger global technology cues following NVIDIA’s results.

“What I am watching now is whether the market can sustain these opening gains. Yesterday’s weakness was largely led by IT stocks and Reliance, so today’s recovery needs broader participation rather than being limited to a few heavyweights,” Dixena noted.

According to the analyst, the continued FII buying streak is another positive factor, while DII flows remain supportive. “Technically, Nifty is trading below 24,300, which will act as immediate resistance. A sustained move above this level could take the index towards 24,500 and potentially 24,700. On the downside, 24,150 becomes the first support, followed by the crucial 24,000,” he noted.

Rajesh Palviya, Head of Research at Axis Direct, noted, “Global cues were subdued overnight, with the S&P 500 ending flat, the Nasdaq slipping 0.08 per cent and the Dow losing 113 points, while core PCE inflation came in line with expectations at 3.3 per cent year-on-year.” He noted, “Sentiment has improved since then, led by strong Nvidia results.”

Commenting on NVIDIA’s earnings, he added that the company reported revenue of USD 96.2 billion, more than double that of a year ago, sending its stock over 4 per cent higher in after-hours trading and lifting Asian markets, with the Kospi gaining around 1.4 per cent.

“Brent crude, near USD 86.6 a barrel, has eased for a third consecutive session as concerns over supply disruptions through the Strait of Hormuz moderate, providing some relief to India’s import bill,” Palviya noted. (ANI)