Sensex rises 50 pts, Nifty holds 24,550; IT, metal stocks gain
- Sensex gained 50 points in early trade, Nifty held above 24,550.
- IT and metal stocks were among the top sectoral gainers.
- Markets remained range-bound as investors tracked US-Iran talks and Q1 results.
Mumbai: Indian equity benchmarks opened on a cautious note on Monday, with the Sensex adding about 50 points and the Nifty holding above the 24,550 level. Early trade saw the market swing between small gains and losses, reflecting a lack of clear directional cues.
IT and metal stocks emerged as the early movers, supporting the indices. However, broader market sentiment stayed subdued as investors weighed the latest round of US-Iran negotiations and a fresh batch of corporate earnings.
Range-bound start
The BSE Sensex was trading at around 80,400 levels, up 50 points from the previous close. The NSE Nifty, meanwhile, hovered near 24,560, a modest gain of roughly 15 points. Market breadth was slightly positive, though midcap and smallcap indices showed mixed trends.
According to traders, the absence of any major domestic trigger kept volumes thin in the opening hour. The focus remained on global cues, particularly the outcome of diplomatic talks between Washington and Tehran, which have the potential to influence crude oil prices and, by extension, inflation expectations.
Sectoral movers
IT stocks were among the top gainers, with the sector index rising nearly 0.5 per cent. Metal shares also traded firm, helped by a recovery in base metal prices on the London Metal Exchange. On the flip side, banking and auto stocks saw mild profit-taking, capping the upside for the benchmarks.
In individual stocks, Kaynes Tech slumped over 8 per cent after the company reported its June quarter results. The sharp fall dragged the stock to its lowest level in several weeks, and it remained the biggest loser on the Nifty Midcap index.
Broader market under pressure
The Nifty MidCap and Nifty SmallCap indices were trading flat to slightly negative, reflecting cautious sentiment among retail investors. Analysts said the broader market has been underperforming the benchmarks for the past few sessions, as concerns over valuations persist.
Foreign institutional investors have remained net sellers in recent weeks, while domestic institutions have provided some support. This tug-of-war has kept the market in a tight range, with the Nifty struggling to sustain gains above 24,600.
What to watch
Traders are now awaiting further cues from the US-Iran talks, which could impact global risk sentiment. A breakthrough in negotiations may cool oil prices and boost equities, while a breakdown could trigger a sell-off.
On the domestic front, a slew of Q1 earnings from midcap companies is scheduled this week. Any negative surprises could add to volatility. For now, the market appears to be in a wait-and-watch mode, with immediate support for the Nifty seen around the 24,400 level.