Market Today: Sensex Gains 75 Points, Nifty Opens Above 23,450 Higher As Oil Prices Fall

Stock Market Today, September 22: The Indian stock markets opened higher on Tuesday, September 22, supported by easing crude oil prices, softer US bond yields and positive global market cues. However, continued foreign selling and geopolitical tensions kept gains in check.

At 9:22 am, the BSE Sensex was trading at 74,934.96, up 75.97 points or 0.10% in early trade, while the Nifty was up by 27.05 points or 0.12% at 23,441.35. The broader market also started on a positive note, with Nifty Next 50, Nifty Bank and Nifty Midcap Select gaining in early trade.

According to analysts, Indian equity markets opened on a positive note supported by a continued decline in crude oil prices, which have fallen for four consecutive sessions.

WTI crude was trading

in the $92-$93 a barrel range, offering some relief on the broader macroeconomic front. US Treasury yields have also eased, with the 10-year yield moving back below 5% after recently touching multi-year highs.

Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm, said lower bond yields and softer oil prices are improving the global risk backdrop. However, continued foreign selling remains a key headwind for Indian equities, while sustained buying by domestic institutional investors is providing some support.

Asian Markets Rally

Asian markets were largely higher on Tuesday, taking cues from the overnight gains on Wall Street and lower crude oil prices.

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

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

Technology stocks led gains across several Asian markets as investors focused on lower oil prices and hopes of diplomatic engagement between the US and Iran.

Crude Oil Prices

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

Lower oil prices are positive for India because the country is a major importer of crude. A sustained decline can help ease inflationary pressures and improve the country’s external balance.

However, the Middle East remains a major risk for oil prices. Any fresh escalation involving the US and Iran could reverse the recent decline in crude prices.

US-Iran Talks In Focus

Investor sentiment has also improved on hopes of a possible meeting between US President Donald Trump and Iranian President Masoud Pezeshkian, who is expected to be in New York this week for the UN General Assembly.

Ponmudi said geopolitical tensions are likely to keep investor sentiment guarded, with buying interest potentially remaining selective at higher levels.

“Continued uncertainty surrounding Middle East tensions and regional energy supplies remains a key risk, with any fresh escalation capable of quickly reversing the recent decline in crude oil prices,” he said.

US-China Meeting Also On Radar

Markets are also watching a high-level meeting between Trump and Chinese President Xi Jinping later this week. Investors are looking for signs that the world’s two largest economies can prevent further deterioration in trade relations.

Meanwhile, optimism around artificial intelligence remained another supportive factor for technology stocks.

IT Stocks Under Pressure

IT stocks could remain in focus after the sector lagged the broader market in the previous session. The Nifty IT index fell 1.19% on Monday, while the Nifty 50 gained 0.29%.

In early trade on Tuesday, several IT stocks were again among the laggards. TCS, Infosys, Tech Mahindra and HCL Technologies were trading lower, while heavyweight banks, auto and select financial stocks supported the market.

Dollar, Rate Hike Bets

The US dollar remained firm as investors continued to assess the possibility of further rate hikes by major central banks. The dollar index was around 100.4, close to a seven-week high, while the Japanese yen was near 157.39 per US dollar.

Investors are also reassessing the outlook for US monetary policy after the Federal Reserve’s latest rate decision and its warning that inflation remains a concern. According to CME FedWatch data cited in the market commentary, expectations of an October rate hike have increased.

In the previous session, Indian benchmark indices ended higher on Monday, helped by easing crude oil prices, lower bond yields and hopes of diplomatic engagement between the US and Iran. The Nifty closed at 23,414.30, gaining 67.90 points or 0.29%, while the Sensex rose 564.03 points or 0.76% to close at 74,858.99.