Did Sensex and Nifty Start Higher with Auto and Metal Stocks Gaining?

Mumbai, Aug 4 (NationPress) The Indian stock market commenced on a positive note on Monday, buoyed by gains in the auto and metal sectors, amid a backdrop of mixed global signals. At 9:29 am, the Sensex climbed by 221 points or 0.28 percent, reaching 80,821, while the Nifty increased by 82 points or 0.33 percent, settling at 24,647.

In the initial trading hours, the auto and metal sectors led the charge, surging by 0.93 percent and 1.07 percent, respectively. The Nifty Bank index also saw a slight uptick of 0.13 percent, standing at 55,688 points.

Both midcap and smallcap stocks attracted buying interest, with the Nifty midcap 100 index rising by 0.44 percent and the Nifty smallcap 100 index climbing 0.39 percent.

Among sectoral indices, all except for Nifty IT were in positive territory.

From a technical standpoint, the Nifty has surpassed its 100-day Exponential Moving Average (EMA), with vital support anticipated near the 200-day EMA at 24,180, followed by a psychological level at 24,000, according to analysts.

“Should the index manage to reclaim the 24,750 level, a short-term recovery towards the 25,250–25,500 zone could be on the cards. However, ongoing volatility and visible resistance near key option strikes indicate persistent overhead supply issues,” stated Hardik Matalia from Choice Equity Broking.

Within the Nifty pack, Bharat Electronics, Grasim Industries, Tata Steel, and Shriram Finance were among the leading gainers. Conversely, IT stocks remained under pressure, with Infosys, Tech Mahindra, and HCL Technologies featuring as top laggards.

The latest round of tariffs and the jobs report from the United States led to a decline on Wall Street last Friday. US equities faced significant drops, with the Dow Jones falling by 1.23 percent, the S&P 500 decreasing by 1.60 percent, and the Nasdaq Composite declining by 2.24 percent.

This has sparked speculation regarding potential interest rate cuts by the US Federal Reserve in the upcoming month.

In Asian markets, sentiment appeared mixed, as China’s Shanghai Composite gained 0.23 percent, Hong Kong’s Hang Seng Index rose by 0.50 percent, and South Korea’s Kospi advanced by 0.77 percent, while Japan’s Nikkei 225 saw a decline of 1.63 percent in the morning session.

Foreign institutional investors (FIIs) continued their selling streak for the tenth consecutive session on August 1, offloading equities worth Rs 3,366 crore. In contrast, domestic institutional investors (DIIs) maintained their buying trend for the 20th straight day, investing Rs 3,186 crore on the same day.

Analysts suggest that in the short term, the market is traversing uncharted waters, and a clearer direction will emerge with news surrounding the upcoming US-India trade deal following the next round of trade negotiations.

aaron/na