Nifty, Sensex open with gain: experts note reduction of geopolitical risks on markets

• Stock markets opened marginally up on Monday, starting the week on a cautious note.
• Experts noted that the effect of the Chinese stimulus and geopolitical risks in Indian markets is slowing.
• Reliance Industries, HCL Technologies and Angel One are the major companies set to announce their quarterly results today.

On Monday, the stock markets started the week cautiously, with both indices showing small gains. The Nifty index went up by 59.20 points and opened at 25,023. The BSE Sensex index also did well, going up by 0.24% or 195 points to open at 81,576.93.

Experts say that the Chinese stimulus and the world's politics are having less of an effect on Indian markets. But the upcoming US presidential election is making the world more volatile, so the markets won't be able to relax anytime soon.

"Chinese stimulus boost is wearing thin but Indian markets are not benefitting for now. Earnings will be drivers of the Indian markets this week. The geopolitical risks have reduced slightly with a relatively calm weekend in the Middle East. October has played out to the US Presidential cycle historical performance. Expect more volatility going into the tight US race and a relief rally post the Nov 5th vote" said Ajay Bagga, Banking and Market Expert.

The equity market experienced a surge in prices today, with all sectors demonstrating a positive trend from the outset. Nifty Media emerged as the standout performer, registering a significant increase of 0.55% at the opening bell.

Investors are advised to closely monitor the performance of Reliance Industries, HCL Technologies, Angel One, and Alok Industries. These companies are scheduled to release their quarterly financial results later today.

"Nifty continues to remain in a range of 24800 to 25200. However, FIIs long continue to be at 36% indicating the rise of net shorts which can see a selling pressure in indices at resistances. For any short covering in Nifty, it has to cross the 25300+ level for the same. However, were the support of 24800/24750 to break, a fresh round of selling can be witnessed towards the 24500/24300 range" said Soni Patnaik, AVP, Derivatives Research Analyst, JM Financial Services.

In other Asian markets on Monday, Hong Kong's Hang Seng index was down by 1.21%, along with Taiwan's Taiwan Weighted, which was also down marginally. South Korea's KOSPI index gained 1% at the time of filing this report.

FPIs turn net seller in October

Foreign investors turned net sellers in October, withdrawing shares worth ₹58,711 crore in the month so far owing to the escalating conflict between Israel and Iran, a sharp rise in crude oil prices, and the strong performance of the Chinese market. The outflow came following a nine-month high investment of ₹57,724 crore in September.

Looking ahead, global factors such as geopolitical developments and the future direction of interest rates will play a crucial role in determining the flow of foreign investments into the Indian equity markets, as per Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India.

The geopolitical crisis has also led to a sharp rise in Brent crude oil prices from $69 per barrel on Sep 10 to $79 per barrel on Oct 10, which poses inflationary risks and increases the fiscal burden for India, he added.

With inputs from agencies.

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