Stock market starts trading on green mark; Sensex rises 300 points, Nifty crosses 25000

New Delhi| On the first trading day of the week, major benchmark indices of the stock market Sensex and Nifty opened on the green mark. The 30-share Sensex jumped over 300 points to 81,697 in early trade. Nifty, on the other hand, strengthened by 94 points to once again cross 25000.

At 9:33 am, Sensex was seen trading at 81,696.70, up 315.34 (0.38%) points, while Nifty was seen trading at 25,057.95, up 93.71 (0.38%) points. On the opening day of the week, investors will keep an eye on the Timaji results of big companies like Reliance Industries and HCL Tech.

Apart from this, retail inflation figures are also to be released in the domestic market, to a great extent this will also decide the direction of the market. Inflation data will make it easier for investors to predict when a possible cut in interest rates will begin.

During the week starting today, the direction of the market will be largely determined by the financial results of the companies. During this period, results of big companies of the country like Reliance, Infosys, HDFC Bank, Axis Bank and HCL Tech are to be declared. Investors will focus on the impact of ongoing geopolitical tensions globally, especially the conflict in West Asia, on oil prices as well as on global investment flows. The rupee rose 4 paise to 84.06 against the dollar in early trade.

The strongest stocks of NSE Nifty during the initial trading session on Monday were Shriram Finance, Wipro, L&T, HDFC Bank, BPCL. These showed gains of up to 2.10 per cent. Maruti, on the other hand, recorded the highest decline of 0.83%. Shares of UltraTech Cement, Bajaj Finance, Britannia and Cipla were also seen trading in the red. 30 shares of Nifty were seen trading with 36 gains while 14 shares were seen trading with a decline.

Selling by foreign investors continued in the market last week. Foreign institutional investors (FIIs) sold shares worth Rs 4,162.66 crore on Friday, while domestic institutional investors (DIIs) bought shares worth Rs 3,730.87 crore, according to exchange data.

This month, as of October 11, FPI has sold equity worth Rs 58,710 crore. However, large-scale sales have not had any serious impact on the market as the lack of selling by the entire FPI is being compensated by DII purchases.

“This trend of selling of FIIs and buying of DIIs is expected to continue in the near future, as Chinese shares remain cheaper than higher valuations in India”, said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

In Asian markets, Tokyo, Shanghai and Seoul were seen trading in the green, while Hong Kong was in the red. Vijayakumar said, “It and banking stocks are likely to remain strong due to expectations of good results in the second quarter”. However, the chances of a market boom from here are limited.”

Wall Street closed with gains on Friday. According to Vijayakumar, along with uncertainty regarding the US presidential elections to be held next month, geopolitical tensions in the Middle East can also impact the market.