Benchmark stock market indices opened higher on Monday, supported by easing crude oil prices as investors also kept an eye on the election results in the states of Tamil Nadu and West Bengal.
The S&P BSE Sensex was up 778.78 points to 77,692.28, while the NSE Nifty50 jumped 223.80 points to 24,221.35 as of 9:35 am.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that today’s market action may be unduly influenced by the state election results with focus on West Bengal.
“But it is important to note that this will be only a very short-term sentimental impact. The real market trend will be guided by the crude oil prices, which, in turn, will be decided by the news and happenings in West Asia. President Trump’s declaration that the US will help and guide ships through the Strait of Hormuz has brought Brent crude down to around $108 levels,” he added.
Also, there is a latest proposal from Iran to the US delivered through Pakistan.
Another major factor influencing market behaviour will be the FII activity. The continuing momentum in the AI trade implies that FIIs will continue to sell in India. This might keep largecaps under check with activity moving significantly to the broader market. Therefore, any rally triggered by the domestic political developments will be used by FIIs to sell more. The global AI trade will continue to weigh on markets in the near-term.