Sensex, Nifty Edge Up At Open As Falling Oil Prices Offer Market Support

24 Aug : Indian equity benchmarks opened in positive territory on Monday, providing some relief after the domestic market recorded losses in each of the previous two weeks.

The Nifty climbed 33.05 points, or 0.14 per cent, to open at 24,285.05. The Sensex also gained 88.73 points, or 0.11 per cent, starting the session at 77,629.56.

Metal shares led the early advance, with the Nifty Metal index rising close to 1 per cent.

The Nifty Media index added 0.72 per cent, while the Nifty Oil & Gas and Nifty IT indices gained 0.59 per cent and 0.40 per cent respectively.

Auto stocks, private-sector banks and financial services companies also traded higher during the opening hours.

In contrast, the Nifty Healthcare and Nifty Pharma indices slipped 0.5 per cent each, while consumer durables, realty and FMCG stocks remained weak.

Analysts See Limited Upside

Market experts expect the Nifty to move within the 24,200-24,600 range in the short term.

They said resilient domestic economic conditions and better earnings prospects could support equities, although elevated oil prices and geopolitical uncertainty could restrict gains.

Analysts pointed to Brent crude trading around $93 a barrel and continuing tensions linked to conflicts in West Asia and the Russia-Ukraine region as factors that could trigger selling at higher market levels.

Despite these concerns, investors continued to show interest in sectors such as contract development and manufacturing, healthcare, precision engineering and power infrastructure.

Experts, however, advised caution against buying stocks trading at stretched valuations.

Crude oil prices fell by as much as 2 per cent as traders awaited further details regarding potential US sanctions on Iran. Brent crude traded near $92 a barrel, while US WTI slipped below $85.

Domestic institutional investors continued their buying momentum on August 21, extending the streak to nine consecutive sessions with purchases worth ₹2,124 crore.

Foreign institutional investors remained net sellers for a second session, selling equities worth ₹543 crore.

Asian markets also weakened on Monday as investors looked ahead to Nvidia’s earnings and the US Federal Reserve’s annual symposium, keeping global sentiment cautious.