Stock Market Opening: Sensex Climbs 75 Points, Nifty Starts Above 23,450 as Crude Oil Prices Decline

Stock Market Today, September 22: Indian benchmark indices opened higher on Tuesday, tracking positive global cues, easing crude oil prices and softer US bond yields.

However, continued foreign fund outflows and geopolitical uncertainties limited the upside. The Sensex was trading at 74,934.96, up 75.97 points or 0.10%, at 9:22 am. The Nifty 50 gained 27.05 points or 0.12% to trade at 23,441.35. The broader market also started on a firm note, with the Nifty Next 50, Nifty Bank and Nifty Midcap Select indices in positive territory.

Analysts said the recent decline in crude oil prices has supported investor sentiment. Oil prices have fallen for four consecutive sessions, easing some concerns over inflation and India’s import bill.

WTI crude was trading between $92 and $93 a barrel, while the US 10-year Treasury yield moved below 5% after recently touching multi-year highs.

Ponmudi R, CEO of Enrich Money, said lower oil prices and easing bond yields have improved the global risk environment. At the same time, continued foreign selling remains a pressure point for Indian equities, while domestic institutional buying is providing some cushion.

Asian Markets Gain

Most Asian markets traded higher on Tuesday, following overnight gains on Wall Street and the decline in crude prices.

South Korea’s KOSPI surged nearly 2%, while Taiwan’s market gained around 1.3%. China’s blue-chip index advanced about 0.75%, and Hong Kong’s Hang Seng rose nearly 0.4%. Japan’s Nikkei 225 was closed for a market holiday.

MSCI’s Asia-Pacific index excluding Japan gained more than 1% in early trade. Nasdaq futures rose around 0.37%, while European futures were up nearly 0.3%.

Technology stocks were among the major gainers across Asian markets as investors tracked lower oil prices and prospects of diplomatic engagement between the US and Iran.

Oil Prices in Focus

Crude oil remained a key market driver. Brent crude futures were around $100.22 per barrel, after falling more than 3% in the previous session and briefly slipping below the $100 level.

For India, lower crude prices can provide relief by reducing the cost of imports, easing inflationary pressure and supporting the external balance.

However, risks remain due to tensions in the Middle East. Any escalation between the US and Iran could trigger another sharp rise in oil prices.

US-Iran Talks on Investors’ Radar

Markets are also tracking the possibility of a meeting between US President Donald Trump and Iranian President Masoud Pezeshkian, who is expected to visit New York for the UN General Assembly.

Ponmudi said investors are likely to remain cautious amid continuing geopolitical risks, with buying interest potentially becoming selective at higher levels.

Uncertainty surrounding Middle East tensions and regional energy supplies remains a major risk for markets, particularly because a fresh escalation could quickly push crude prices higher.

Trump-Xi Meeting in Focus

Investors are also awaiting a high-level meeting between Trump and Chinese President Xi Jinping later this week. Markets will watch for indications of progress in relations between the world’s two largest economies.

At the same time, optimism surrounding artificial intelligence continues to provide support to technology stocks globally.

IT Stocks Lag

IT stocks remained under pressure after underperforming the broader market in Monday’s session.

The Nifty IT index fell 1.19% on Monday, while the Nifty 50 ended 0.29% higher. In early Tuesday trade, TCS, Infosys, Tech Mahindra and HCL Technologies were among the IT stocks trading lower.

Banking, automobile and select financial stocks, meanwhile, provided support to the broader market.

Dollar and Rate Outlook

The US dollar remained firm as investors assessed the outlook for interest rates.

The Dollar Index stood around 100.4, near a seven-week high, while the Japanese yen traded near 157.39 per US dollar.

Investors are reassessing the US monetary policy outlook following the Federal Reserve’s latest rate decision and its continued concerns over inflation. Market expectations for an October rate hike have also risen, according to CME FedWatch data cited in market commentary.

Sensex, Nifty Performance on Monday

Indian markets ended higher in the previous session, supported by falling crude prices, lower bond yields and hopes of diplomatic engagement between Washington and Tehran.

The Nifty 50 closed at 23,414.30, gaining 67.90 points or 0.29%, while the Sensex climbed 564.03 points or 0.76% to end at 74,858.99.