Key Highlights

• Higher open: Nifty opened at 22,593.20, up 72.75 points; Sensex at 72,771.32, up 298.99 points.
• Sectors: Media, auto and chemicals rose up to 1%; only PSU banks were marginally lower.
• Oil eases: Prices fell on expectations of higher Russian supply after an agreement to halt attacks on energy facilities.
• Key level: Nifty needs to close above 22,575 to break the bearish trend, analysts said.
• Long-term view: Experts see value-buying opportunities, backed by a 7.1% GDP growth estimate for FY27.

Indian markets opened higher on Monday, extending Friday’s rebound, on the back of gains in Asian markets and easing crude oil prices.

Nifty began at 22,593.20, up 72.75 points or 0.32%, while Sensex opened at 72,771.32, up 298.99 points or 0.41%. Most sectoral indices traded in the green, with media, auto and chemicals gaining up to 1%, and realty, oil and gas, cement, metal and IT also higher. PSU banks were the only marginal decliner.

Why It Matters: Oil Is Still the Market’s Main Switch

The biggest driver this morning came from far away. Oil prices eased on prospects of higher Russian supply following an agreement to halt attacks on energy facilities. That follows last week’s drop in crude after the US said it would refrain from military action against Iran before its midterm elections.

For India, which imports most of its oil, each easing in crude helps on inflation, the rupee and corporate costs. Analysts said a sharp fall in crude following favourable developments in the Middle East could trigger a significant rally.

Headwinds vs Fundamentals

Experts said the market is in a phase where “external headwinds are dominating domestic tailwinds.” High crude prices and US bond yields are expected to keep foreign investors selling in the near term, with domestic institutions absorbing that selling.

At the same time, the fundamentals look solid. The RBI recently raised its FY27 growth estimate to 7.1%, and corporate profitability is improving. “For investors with medium-to-long-term horizon, this market provides value buying opportunities. Patience is key,” analysts said.

Key Levels

A failure to close above 22,575 would keep the trend bearish, an analyst said.

What to Watch

• Q2 earnings season, which could test technology stock valuations
• Crude oil and developments in the Middle East and Russia
• FII flows

The Bottom Line

Markets have started the week on a firm note, helped by cooling oil. Whether the rebound holds will depend on Nifty closing above 22,575, and on crude staying in check.

With inputs from IANS.