Nifty, Sensex open flat amid optimism of touching fresh highs: Experts

MUMBAI: Domestic markets opened flat on Monday as the tug of war between bulls and bears continued, starting another week of cautious optimism amid expectations that indices may soon touch fresh record highs.

The Nifty 50 index opened at 26,122.80, gaining 54.65 points or 0.21 per cent, while the BSE Sensex began the day at 85,320.04, up 88.12 points or 0.10 per cent.

With the steady opening momentum, both indices moved closer to their all-time highs, Nifty’s record peak of 26,277.37 and Sensex’s high of 85,978.25, both achieved in September 2024.

Market experts noted that Indian equities are holding firm despite global pressure, with investors closely tracking upcoming U.S. economic data to gauge how tariffs might impact the American economy and influence future policy decisions.

Ajay Bagga, Banking and Market Expert, told ANI, “Indian markets will watch the Rupee closely. Friday’s market fall coincided with the Indian Rupee breaking through stops at Rs 88.8 per US dollar and then breaking the sentimental level of Rs 89 per US dollar. Trade and portfolio flows weakness and the lack of apparent/visible RBI intervention impacted Rupee sentiment.”

In the broader market on the NSE, volatility eased, and most indices opened in the green. Nifty 100 was up by 0.10 per cent, while Nifty Smallcap and Midcap shares opened flat but remained under pressure.

Ponmudi R, CEO of Enrich Money, said, “India stands out, with domestic resilience once again cushioning the impact of external volatility and keeping investor sentiment relatively stable. Market participants will be watching closely for any signs of moderation in the labour market or broader economic activity, as softer readings could strengthen expectations of further policy easing by the Federal Reserve. Global sentiment remains mixed, while there are no fresh negative triggers, risk-on appetite continues to be measured.”

Among sectoral indices, except Nifty Auto, Nifty FMCG, Nifty Pharma and Nifty Realty, all other sectors opened with gains. Nifty IT surged 1.34 per cent in early trade, leading the rally.

Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, added, “Nifty is currently hovering near its All-Time High (ATH) of 26,250 a breakout above this resistance would indicate a continuation of the uptrend in the sector. The week might be tough for the index, as FIIs have shown heavy selling for the last four months, coupled with the Rupee hitting an all-time low of around Rs 90, which might weaken market strength.”

Across Asia, major markets traded in the green at the time of reporting. Hong Kong’s Hang Seng index surged 1.4 per cent, South Korea’s KOSPI was up more than 1 per cent, and Taiwan’s weighted index gained 0.9 per cent, while Japan’s Nikkei 225 remained shut for a holiday.

Meanwhile, U.S. futures were trading higher as investors awaited key economic data releases. Producer inflation, retail sales and industrial production numbers for September will be released on Tuesday, followed by the third-quarter GDP data on Wednesday. (ANI)