CHENNAI: Asian markets opened the week on a positive note as investor sentiment improved due to weaker yen, steady oil prices, and expectations of a US interest rate cut later this month. The global mood is cautiously optimistic after mixed economic data and central bank signals.
In Japan, the Nikkei 225 index rose significantly after Prime Minister Shigeru Ishiba announced his resignation. This political development weakened the yen, which in turn boosted Japanese exporters, giving the stock market a strong lift. Similarly, Hong Kong’s Hang Seng Index started higher, supported by optimism from regional investors.
China’s Shanghai Composite Index posted a modest gain as investors remained cautious, waiting for further economic updates. Meanwhile, South Korea’s KOSPI and Singapore’s Straits Times Index both recorded small advances, reflecting general confidence in regional markets. However, Indonesia’s IDX Composite remained under pressure due to ongoing political unrest, raising investor concerns.
India
Turning to India, market indicators pointed towards a positive opening. The GIFT Nifty traded around 24,911 early Monday, indicating a firm start for the Nifty 50 and Sensex indices. Started strong, BSE Sensex rose 144 points at 80,854 and Nifty touched 24,805 at 10.15 AM on Monday.
On Friday, the Sensex closed flat at 80,710.76 points, while the Nifty 50 ended slightly higher at 24,741 points. The Bank Nifty index showed resilience, closing near 54,100 points, reflecting strength in the financial sector.
Several key sectors showed mixed trends. Stocks in the auto, metal, media, and consumer discretionary segments attracted buying interest. In contrast, FMCG, IT, and realty sectors experienced some selling pressure as investors remained selective amid global uncertainties.
Analysts are closely watching the 25,000 level in the Nifty 50 index. A breakout above this resistance level could signal a fresh upward trend, while support is expected near 24,600 points. Investors remain cautious ahead of the two-day 56th GST Council meeting scheduled later this week.
It is important to note that Mumbai observes Eid-e-Milad today as a public holiday, but the stock market will remain open for trading.
Several individual stocks are also in focus today. Vedanta, Hyundai, Adani Power, BHEL, Aurobindo Pharma, and SpiceJet are being watched for possible price movements. Technical analysts have recommended keeping an eye on Swiggy and Goldiam International for potential trading opportunities.
Globally, oil prices inched higher after OPEC+ adjusted supply levels, contributing to a mild upward trend in energy stocks. Meanwhile, weak US jobs data released last week has increased market expectations that the Federal Reserve may cut interest rates this month, supporting risk-on sentiment.