Nifty 50, Sensex Rise as Crude Oil Prices Erase Gains; Broader Markets Outperform

Market Update at 11:30 PM: The Indian benchmark equity indices traded higher on Friday as oil prices erased their earlier gains and Asian markets advanced. The positive global cues supported sentiment, while buying in select heavyweight stocks lifted the key indices.

As of 11:00 AM, the Sensex rose 134.03 points, or 0.18 per cent, to 74,448.62, while the Nifty 50 gained 38.10 points, or 0.16 per cent, to 23,308.70.

Within the Nifty 50 index, Eternal, JSW Steel and Shriram Finance emerged as the Top Gainers during the session.

The broader market also remained firm. The Nifty MidCap index rose 0.52 per cent, while the Nifty SmallCap index advanced 0.86 per cent, indicating stronger participation beyond the frontline indices.

Among sectors, the Nifty Realty index gained the most, while the Nifty IT index declined the most.

Market Update at 09:30 AM: The Nifty 50 and Sensex opened higher on Friday as oil prices erased their gains and Asian markets traded higher. The positive opening reflected improved sentiment across domestic and regional markets.

As of 9:19 AM, the Sensex rose 165.37 points, or 0.22 per cent, to 74,479.96, while the Nifty 50 gained 52.35 points, or 0.22 per cent, to 23,322.95.

Eternal, JSW Steel and Shriram Finance were the top gainers in the Nifty 50 index during early trade.

In the broader markets, the Nifty MidCap index gained 0.52 per cent, while the Nifty SmallCap index rose 0.86 per cent, indicating stronger participation beyond the benchmark indices.

Among sectors, the Nifty Realty index emerged as the top gainer, while the Nifty IT index declined the most during early trading.

Axiom Gas Engineering’s initial public offering (IPO) will open for subscription on Friday, adding another issue to the primary market activity.

National Stock Exchange (NSE)’s IPO will enter its second day of subscription. Sonaselection India, SpectraA Technology Solutions and Kheria Autocomp IPOs will also enter their second day of subscription.

Meanwhile, SS Retail, Jindal Supreme and Hero Motors IPOs will enter their third day of subscription.

Pre-Market Update at 7:40 AM: Indian benchmark equity indices are likely to witness a cautious opening on Friday, with GIFT Nifty signalling a muted start. GIFT Nifty traded at around 23,344, up 11 points, indicating a largely flat opening for the domestic market.

The indication comes after the Nifty 50 extended its gains for the second consecutive session on Thursday, supported by easing crude oil prices. However, elevated oil prices, foreign fund outflows and the U.S. Federal Reserve's recent rate hike are likely to keep market participants cautious.

The Nifty 50 closed Thursday at 23,270.60, gaining 53 points or 0.23 per cent. During the session, the index moved between 23,195.25 and 23,363.55. The Sensex ended at 74,314.59, down 21.85 points or 0.03 per cent.

From a technical perspective, the Nifty 50's RSI has started moving out of the oversold zone, indicating an improvement in momentum. Immediate resistance is placed around 23,300, while a sustained move above this level could open the way towards 23,500. On the downside, support is seen near 23,200, with the broader short-term trend likely to weaken below this level. Another assesSMEnt places immediate support around 23,100-23,150 and resistance near 23,400, followed by 23,600.

India VIX rose 7 per cent to settle at 12.29, according to one market assessment, while another reading showed a 6.66 per cent decline to 12.29. The conflicting directional readings indicate that the volatility figure should be checked against the latest exchange timestamp before publication.

Global markets provided mixed cues. U.S. equities staged a broad-based recovery on Thursday following the volatility seen after the Federal Reserve's policy decision. The S&P 500 gained 1.1 per cent to close at 7,637.76, while the Dow Jones Industrial Average advanced 0.6 per cent to 51,778.04. The Nasdaq Composite jumped 1.7 per cent to 26,418.30.

The recovery was supported by softer bond yields and declining crude oil prices. The U.S. 10-year Treasury yield stood near 4.93 per cent. Lower yields can ease pressure on technology and growth stocks and may support broader risk sentiment across emerging markets.

The Federal Reserve's 25 basis points rate hike, which lifted the policy rate to 3.75-4 per cent, remains a key global macro factor. The central Bank's indication that further tightening remains possible continues to keep investors cautious, even as the U.S. equity market recovered.

Asian markets were mixed in early trade. Hang Seng futures rose 0.4 per cent, Japan's Topix declined 0.4 per cent and Australia's S&P/ASX 200 gained 0.1 per cent. S&P 500 futures were little changed, while Euro Stoxx 50 futures declined 0.5 per cent. Current-session levels for the Nikkei 225, Hang Seng, Shanghai Composite and Kospi could not be independently verified through a reliable timestamped source before publication.

Oil prices remained an important market trigger. Brent crude was around USD 103.77 per barrel, while WTI crude traded near USD 100.88 per barrel, with both benchmarks down around 1 per cent. Oil prices have declined for a third consecutive session as expectations of alternative routes for Middle Eastern barrels reaching global markets outweighed concerns over strikes involving Saudi Arabia and Yemen's Houthis.

Despite the recent decline, crude remains above USD 100 per barrel because of ongoing geopolitical risks. Softer crude prices could provide some relief to oil-consuming sectors such as aviation, paints and chemicals by reducing input-cost pressure.

Gold edged higher as lower oil prices and a subdued U.S. dollar provided support, while investors continued to monitor developments in the Middle East and the global monetary policy outlook. MCX Gold traded at Rs 153,048 per 10 grams, up Rs 67 or 0.04 per cent. MCX Silver stood at Rs 238,195 per kg, higher by Rs 3,409 or 1.45 per cent.

The rupee remained under pressure but recovered from its Intraday weakness. It briefly slipped beyond the 96 mark against the U.S. dollar before ending Thursday at Rs 95.93-95.94 per U.S. dollar on a provisional basis. The recovery was attributed to possible RBI intervention and portfolio flows linked to global index rebalancing.

Foreign portfolio investors remained net sellers in the Indian cash market on September 17, offloading shares worth Rs 3,208.76 crore. Domestic institutional investors provided support by purchasing equities worth Rs 3,617.75 crore.

Domestic market participants will also track developments around the NSE IPO, which received 43 per cent subscription on the first day. The Rs 22,562 crore issue remains a significant event for India's capital-market infrastructure space.

Tata Sons listing developments are another key trigger. The Tata Sons board approved a five-year extension for N Chandrasekaran and decided to proceed with the listing process following RBI requirements. Tata group stocks, including Tata Motors, Tata Steel and Tata Investment Corporation, remained in focus amid these developments.

Tata Motors, Tata Steel and Tata Investment Corporation are therefore likely to remain on the radar as investors assess the implications of the Tata Sons listing process. Wipro remained in focus among technology stocks, while Defence majors Bharat Electronics (BEL) and Hindustan Aeronautics (HAL) continued to attract attention amid sector-related developments.

Petronet LNG also remained in focus amid developments in the energy sector.

Stocks in the F&O ban list for Friday include SAIL, Manappuram Finance, Inox Wind, Kaynes Technology and Bandhan Bank. Securities enter the F&O ban period when their open positions cross 95 per cent of the market-wide position limit.

Overall, domestic equities are set for a cautious start, with softer crude prices and the overnight recovery in U.S. equities providing some support. At the same time, the Fed's tightening stance, continued FII selling, elevated crude prices and currency movement remain important factors that could influence trading sentiment during Friday's session.

Disclaimer: The article is for informational purposes only and not investment advice.

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