Indian stock indices opened higher on Monday, driven by supportive global market trends, softer US jobs data, and declining oil prices, offering a rare boost after weeks of declines, though market fragility remains amid external pressures.
Indian shares opened higher on Monday as investors took encouragement from firmer global markets and signs that the Federal Reserve may have less room to tighten policy aggressively after softer-than-expected US jobs data. The Sensex started at 72,340.95, up more than 400 points, while the Nifty opened at 22,532.40, extending a modest early advance and offering a rare lift after eight straight weeks of losses. Pre-market indicators had already pointed to a positive start, with domestic benchmark futures tracking gains in Asia and a softer tone in oil. Reuters and market trackers said the rebound came as traders reassessed global growth and interest-rate risks. Moneycontrol reported that the Sensex later rose about 450 points, with the Nifty reclaiming the 22,550 level.
Buying was broad-based in early trade, with public sector banks, media and metals among the strongest pockets. The Nifty PSU Bank, Nifty Media and Nifty Metal gauges rose by as much as 1%, while real estate, chemicals, fast-moving consumer goods and oil and gas also advanced. Private banks and consumer durables shares joined the move higher, although information technology, automobile and pharmaceutical stocks were largely unchanged and healthcare lagged slightly. The pattern suggested that investors were rotating into sectors seen as more exposed to domestic demand and rate-sensitive lending margins.
The day’s recovery was helped by a combination of lower oil prices and easing fears of an imminent US rate hike. Brent crude was trading close to 1% lower at about $101.27 a barrel, which offered some relief after weeks in which expensive oil had added to inflation worries. Foreign investors had sold shares worth ₹9,484 crore in the previous session, according to market data, but domestic institutions bought ₹10,041 crore and helped cushion the pressure. Analysts also noted that the Reserve Bank of India is widely expected to raise its policy rate by 25 basis points on Wednesday, a move that markets appear to have largely priced in.
Even with Monday’s firmer tone, the broader market backdrop remains fragile. Indian equities have endured a difficult run, with recent sessions marked by foreign selling, elevated US Treasury yields and swings in crude prices. Market participants say the earlier correction has left large-cap valuations looking more reasonable, which could help support a rebound if global conditions remain stable. Strong September vehicle sales have also been read as a sign that domestic demand is holding up better than some investors feared. Still, analysts caution that sustained gains will depend on whether oil, bond yields and overseas fund flows continue to ease.
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