Stock Market Today: Sensex Gains 139 Points, Nifty Above 23,350; Oil Prices, Global Trends In Focus

Stock Market Today, September 23: Indian benchmark indices opened higher on Wednesday, tracking gains across Asian markets and a decline in crude oil prices.

Investors continued to monitor developments in the Middle East while taking cues from global market movements. At 9:16 am, the Sensex was trading 139.36 points, or 0.19%, higher at 74,668.44. The Nifty50 stood at 23,365.75, up 0.16%.

The broader market also started the session on a firm footing. The Nifty Next 50 gained 0.39%, while the Nifty Midcap 100 and Nifty Smallcap 100 rose 0.26% and 0.39%, respectively.

Crude Oil Prices, Asian Markets In Focus

Global cues remained supportive for domestic equities. Asian markets traded largely higher, with South Korea’s KOSPI gaining more than 1%. Japan’s Nikkei, however, remained shut due to a holiday.

Crude oil prices also eased amid reports of improving prospects for energy supplies from the Middle East. Brent crude traded below $100 a barrel, while WTI crude hovered around $90.

For India, lower crude prices could provide some relief given the country’s dependence on imported energy. However, continued selling by foreign investors and uncertainty surrounding the Middle East remained key concerns for the domestic market.

Metal, Realty Stocks Lead Gains

Sectoral performance was mixed in early trade. Nifty Metal gained 0.87%, emerging as one of the stronger performers. Nifty Realty rose 0.46%, while Nifty PSU Bank advanced 0.44%. Nifty Financial Services and Nifty Private Bank also opened higher.

IT stocks were under pressure, with Nifty IT declining 0.36%. Nifty Media fell 0.13%, while Nifty Pharma slipped 0.10%.

Market Outlook

V K Vijayakumar, chief investment strategist at Geojit Investments Ltd, said the market’s recent structure remained technically weak and tilted towards a downward bias.

He said a meaningful change in the market trend would require a significant trigger. A sharp decline in crude prices could provide such support, although the recent fall in Brent crude has not been substantial enough, according to him.

Vijayakumar also pointed to US bond yields as another potential market trigger, but said elevated inflation, particularly across developed economies, could limit the possibility of a significant decline in yields.

According to him, high crude prices and elevated bond yields could continue to restrict a sustained rally in equities.

Mid And Small-Caps Attract Investor Interest

Domestic liquidity continues to provide support to the broader market, with investors showing strong interest in mid- and small-cap stocks. Vijayakumar said expectations of healthy growth and improving business prospects are attracting investments into several companies in these segments.

At the same time, he cautioned that valuations across parts of the mid- and small-cap universe have become stretched.

He pointed to a widening valuation gap between relatively attractively valued large-cap stocks and highly valued mid- and small-cap counters. While such valuation differences can eventually correct towards historical averages, the timing of such a shift remains difficult to determine.