Nifty, Sensex open in the green tracking global markets

• Indian benchmark indices opened in the green on Monday, after a volatile Friday session.
• FPIs sold off ₹5,000 crore of stocks in the last two trading sessions.
• Nifty is expected to reclaim 19,700 on Monday, say market experts.

Indian stock markets opened in the green on Monday, tracking global markets. The indices were up by 0.15%– with Sensex up by 100 points and Nifty by 18 points as of 10:33 am.

The global markets have been upbeat on Monday after Wall Street closed in the positive territory. While the Dow Jones closed 0.5% in the positive, tech heavy Nasdaq Composite rallied 1.9%. US markets have been on a bull run with a winning streak seen for the third week in Dow Jones, and for the gift week in Nasdaq – thanks to indications that inflation is continuing its downward trend.

"Inflation in US as measured by Fed’s preferred gauge, PCE price index softened to 3% in June 2023 from 3.8% in May 2023), its slowest pace in around two years. Core PCE index (excluding food and energy) rose by 4.1% in June 2023 versus 4.6% in May 2023 . The data has raised the possibility that the Fed’s rate hike cycle may have reached its end," said Aditi Gupta, economist at Bank of Baroda.

In Asia, at the time of publishing, the Korean index KOSPI is trading up by 0.8% and Hong Kong’s Hang Seng by 1.5%.

Market experts believe that though Nifty slumped in early trade on Friday, the swing higher towards the close towards 19,620 region is encouraging.

“This set up is also supported by a positive divergence as well as a dragonfly formation, suggesting that Monday should be open to the prospects of reclaiming 19700, followed by an attempt to penetrate the 19,770-840 region which has been a held firm, after the sharp turn lower from the 20,000 vicinity early this month,” said Anand James, chief market strategist at Geojit Financial Services.

Experts however also worry that ₹5,000 crore selloff by FPIs in the last two trading sessions, might lower the sentiment in the Indian market. Moreover, Indian markets have been correcting due to mixed earnings reports in the first quarter, rising dollar index and also a sharp rise in crude oil prices.

Nymex crude opened in red, down by 0.5% to $80.15 per barrel on Monday.

Oil prices were flat on Friday, but on course for a fifth consecutive week of increases, with investors betting that solid demand and supply cutbacks will keep prices high. Gold recovered some ground on Friday as the dollar fell, but it was still on track for its worst week in five after data indicating a solid US economy shattered expectations for a dovish shift in US monetary policy,” said a research report by Geojit.

Benchmark indices Sensex and the Nifty closed marginally in the red on Friday. Private banks, financial and auto sectors had dragged the market while metals and realty stocks traded in the green.

Maruti Suzuki and Power Grid are a few top companies that are expected to declare earnings today.