Indian equity markets opened higher on Monday, October 12, as easing crude oil prices provided support to investor sentiment. The BSE Sensex rose 329.31 points, or 0.45%, to 72,801.64, while the NSE Nifty 50 gained 113.30 points, or 0.50%, to 22,633.75.
The positive opening came amid hopes of improving market sentiment following the previous session’s recovery. However, continued foreign institutional investor (FII) selling and elevated global bond yields remained key concerns for investors.
The Sensex opened at 72,771.32, gaining 298.99 points from Friday’s close of 72,472.33. Meanwhile, the Nifty 50 began trading at 22,593.20, up 72.75 points from its previous close of 22,520.45.
Easing Crude Prices Support Market Sentiment
Crude oil prices remained a key factor influencing domestic equities. At the time of reporting, Brent crude was trading at USD 103.12 per barrel, down 1.53%.
Lower crude prices can ease inflationary pressures and reduce import costs for India, which depends heavily on overseas oil supplies. However, oil prices remained elevated, leaving investors cautious about the broader economic outlook.
Market analyst Vipin Dixena said Indian equities were at a crucial juncture after the Nifty’s recovery on Friday. Investors were looking for follow-through buying to sustain the rebound, supported by easing crude prices and the Reserve Bank of India’s latest measures to stabilise the rupee.
Dixena cautioned that the broader market structure remained fragile and that a single positive session was not enough to confirm a trend reversal. He identified persistent selling by foreign institutional investors as the biggest concern for the market.
Global Headwinds Continue to Weigh on Equities
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said external pressures continued to outweigh positive domestic factors.
According to Vijayakumar, elevated crude oil prices and high US bond yields could continue to influence market movements. He also expected foreign institutional investors to remain net sellers in the near term, while domestic institutional investors could help absorb the selling pressure.
Despite these challenges, Vijayakumar said the recent correction had brought valuations to fair levels, with several market segments becoming attractive. He pointed to projected GDP growth of 7.1% for FY27 and improving corporate profitability as important sources of fundamental support.
He added that a sharp fall in crude prices following favourable developments in the Middle East could trigger a significant rally in Indian equities.
Nifty Technical Outlook: Key Support and Resistance Levels
On the technical front, Hemang Gor, Senior Research Analyst at Axis Direct, noted that the Nifty had closed Friday at 22,520 after recovering 1.30%, or 289 points, from Thursday’s intraday 52-week low.
The recovery was also visible in sectoral indices. The Nifty IT index gained around 3%, while the FMCG index advanced 2.2% during the previous session.
Gor said the Nifty’s undertone would remain fragile below the 22,580 level. He identified 22,800 and 22,900 as key resistance levels, while 22,300 remained immediate support.
A break below 22,300 could expose the index to further weakness towards 22,150. Investors are likely to monitor these levels alongside crude oil movements and foreign investor activity to assess the market’s next direction.
Auto, Realty, Metal and IT Stocks Lead Sectoral Gains
Most major sectoral indices opened in positive territory on Monday. The Nifty Auto index advanced 0.93%, followed by Nifty Realty, which gained 0.81%. Nifty Metal rose 0.66%, while Nifty IT climbed 0.64%.
The Nifty PSU Bank index edged lower by 0.01%.
Among Nifty 50 constituents, Bajaj Auto led the gainers with a rise of 1.77%. HCL Technologies advanced 1.26%, while Bharat Electronics gained 1.24%. Jio Financial Services and IndiGo were also trading higher.
On the losing side, Tech Mahindra declined 2.15%, making it one of the weakest performers in the benchmark index. ITC slipped 0.34%, while SBI, Axis Bank and Bharti Airtel each fell 0.09%.
Asian Markets Trade Mixed
Asian equity markets presented a mixed picture, reflecting continued uncertainty in the global investment environment. South Korea’s Kospi declined 2.87%, while Taiwan Weighted fell 0.30%. Singapore’s Straits Times index gained 0.43%.
Japan’s Nikkei 225 remained closed for Sports Day.
The mixed regional performance highlighted the challenges facing investors as they assess global bond yields, crude oil prices and geopolitical developments.
What Investors Should Watch Next
The domestic market’s ability to sustain Monday’s gains will depend on whether buying continues beyond the opening session. Easing crude prices and support from domestic institutional investors could help stabilise sentiment, but persistent FII selling and elevated global bond yields remain risks.
Investors will also track developments in the Middle East, movements in the rupee and upcoming corporate earnings for clearer signals about market direction.
While the recent recovery has improved sentiment, analysts have cautioned against treating it as confirmation of a sustained reversal. The Nifty’s support around 22,300 and resistance levels at 22,800 and 22,900 will remain important technical markers in the near term.
Market figures and analyst views are based on the information available in the supplied report. Stock-market investments are subject to market risks.
