Indian Stocks Open Steady as Oil Surge and US-Iran Tensions Loom
Indian stock markets opened steady with a modest upward bias on Friday, closing out the week under the shadow of weak global cues, surging crude oil prices and fresh geopolitical concerns involving the United States and Iran.
The Sensex opened 48.65 points higher at 74,199.69, against the previous close of 74,151.04. The Nifty 50 began trading 27.75 points, or 0.12 per cent, up at 22,964.50, compared with Thursday's close of 22,936.75.
During the session, the Sensex advanced 206.51 points, or 0.27 per cent, to record a peak of 74,357.55. The Nifty 50 touched an intraday high of 22,994.70, gaining 0.25 per cent.
Trent was the top performer on the Nifty 50 with a gain of 5.8 per cent. Shares of IndiGo, Sun Pharma, Infosys, Eternal and TCS also featured among the leading gainers. In contrast, Coal India, BEL and Shriram Finance saw the sharpest declines.
The broader market was under mild pressure. The Nifty Midcap 100 shed 0.54 per cent, and the Nifty Smallcap 100 fell 0.86 per cent.
Across sectors, Nifty IT and Nifty Pharma advanced by more than 1 per cent, while Nifty Consumer Durables was the weakest. Nifty Metal, Nifty FMCG, Nifty Auto, Nifty PSU Bank and Nifty Realty also registered losses.
Market specialists attribute the global mood to weak earnings from prominent US tech firms and growing unease over the cost of artificial intelligence investments. These worries have weighed on Asian indices too.
Crude oil continues to be the central risk. Brent crude has risen above 117 dollars per barrel. Market reports suggest that US military operations against Iran may restart after the US midterm elections on November 3, keeping energy markets on edge.
Analysts observed that FII selling has moderated lately, with some buying seen intermittently. However, the prevailing market structure still does not appear conducive to a major rally.
Smallcap stocks had plunged last week after margin-funded long positions were forcibly sold. The segment has now begun to recover, supported by buying from domestic institutions and retail investors in selected growth names, despite stretched valuations.
Experts recommend that investors also monitor largecap stocks. With FIIs pulling back, several robust companies are now available at attractive prices, presenting value-buying opportunities.
On Thursday, foreign institutional investors were net sellers to the tune of 943 crore rupees, snapping a two-session streak of purchases. Domestic institutional investors, on the other hand, bought shares worth 1,924 crore rupees for a second consecutive day.
On the global front, Asian stock markets remain weak. Major US technology companies reported results below expectations, dampening enthusiasm for AI-based investment themes. The US market also closed lower after the Federal Reserve left interest rates unchanged.
In commodities, crude prices remain high. Brent crude rose more than 1 per cent to 113.96 dollars per barrel, while West Texas Intermediate traded near 104.99 dollars per barrel.
Experts say that if oil prices stay elevated for a prolonged period, Indian markets could witness even greater volatility.