Markets rise in early trade on positive global cues

Representative image

The Indian equity indices Sensex and Nifty climbed in early trade on Monday, boosted by gains in banking and finance sectors and bullish global market trends. The 30-share BSE Sensex advanced 460.38 points, or 0.57 per cent, to 81,841.74. The NSE Nifty rose 138.80 points, or 0.56 per cent, to 25,103.05, reported PTI.

The top Sensex performers included Larsen & Toubro, JSW Steel, HDFC Bank, Tech Mahindra, Adani Ports & SEZ, IndusInd Bank, NTPC, and Infosys. Meanwhile, Axis Bank, Bajaj Finance, UltraTech Cement, Maruti Suzuki India, TCS, Asian Paints, Nestle India, and Hindustan Unilever also reported losses.

Reportedly, Foreign Institutional Investors (FIIs) sold equities worth Rs 4,162.66 crore on Friday, while Domestic Institutional Investors (DIIs) bought stocks worth ₹3,730.87 crore, exchange data revealed.

According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, "Despite FIIs selling ₹5,871 crore worth of shares this month through October 11, domestic buyers have absorbed the sell-off. DIIs continue to see strong inflows, supporting the market."

Asian markets were mostly positive, with Tokyo, Shanghai, and Seoul trading in the green, though Hong Kong remained in the red, the report stated.

Vijayakumar added, "Banking and IT stocks are expected to perform well due to anticipated strong Q2 results. However, the market may not see a sharp rise from current levels."

US markets closed higher on Friday, though uncertainty over the upcoming US elections and geopolitical tensions in the Middle East are expected to weigh on global sentiment, the PTI report added. Brent Crude prices dropped by 1.09 per cent, trading at USD 78.18 per barrel.

On Friday, the Sensex closed 230.05 points lower at 81,381.36, while the Nifty slipped by 34.20 points, ending at 24,964.25.

Rupee trades in narrow range against US dollar in early trade

The rupee recovered from its all-time lows, rising 5 paise to 84.05 vs the US dollar in morning trade on Monday, pulled down by high crude oil prices and a strong dollar as risk-off mood gripped the markets. Forex merchants reported massive foreign cash withdrawals and crude oil prices have risen by about 10%, fuelled by Hurricane Milton's impact on US output, as well as Middle East tensions between Israel and Iran. However, the Reserve Bank of India's involvement, backed by record-high reserves, has helped the local currency at lower levels.

With PTI inputs