Indian Markets Rally on Positive Global Cues Amid Geopolitical Concerns

Indian markets opened with gains following global trends, despite last week's decline over 4%. Key indices, Nifty 50 and BSE Sensex, showed positive openings. Analysts remain cautious due to geopolitical risks and volatile conditions as earnings season begins, impacting market stability.

On Monday, Indian markets opened with considerable gains in response to optimistic cues from global markets. This followed a significant loss of over 4% last week. The Nifty 50 commenced trading at 25,084.10 points, marking an increase of 69.50 points or 0.28%, while the BSE Sensex witnessed a rise of 163.56 points or 0.20% to start at 81,852.01.

Market experts anticipate that while the trend will remain positive this week, geopolitical tensions and the initiation of the earnings season could influence market dynamics significantly. Banking and market expert Ajay Bagga expressed optimism, tempered with caution, regarding the Middle East conflict and the upcoming earnings reports, suggesting markets will pivot between economic updates and geopolitical developments following the October 7th attack on civilians.

Within sectoral indices, Nifty IT led the charge with over a 1% surge at opening, propelled by impending quarterly results from major IT firms including TCS. Nifty Metal also posted gains, increasing by more than 0.9%. ITC, Trent, and HCL Tech topped the list of gainers in Nifty 50, whereas Titan, Hindustan Unilever, and Britannia recorded significant losses.

Analyst Varun Aggarwal of Profit Idea noted a downward shift in Nifty 50's near-term trajectory, pinpointing support around 25,000. A minor rebound is expected early this week, yet traders are advised against long positions amid volatility. A drop below 25,000 could herald deeper declines towards 24,500. Concurrently, other Asian markets rallied, with Japan's Nikkei 225 and Hong Kong's Hang Seng both rising over 1%, alongside gains in South Korea and Taiwan. (ANI)

(With inputs from agencies.)