Mumbai (Maharashtra): Indian stock markets opened higher on Monday ahead of Diwali, as festive season optimism and record shopping boosted investor sentiment.
However, experts cautioned that the session may remain volatile due to the upcoming trading holiday and the special Muhurat trading session scheduled for Tuesday.
The Nifty 50 index opened at 25,824.60, gaining 114.75 points or 0.45 per cent, while the BSE Sensex started at 84,267.59, up by 315.40 points or 0.38 per cent.
At 10:35 am, Sensex was tradig 424.53 points up at 84,376.72, whereas Nifty was trading 140.75 points higher at 25,850.60.
Market experts noted that the Indian markets will remain open only for the Muhurat trading session on Tuesday and will be closed on Wednesday, which could lead to profit booking later in the day as traders cut positions ahead of the shortened week.
Ajay Bagga, Banking and Market Expert, told ANI, “Indian market futures are continuing their strong close momentum this morning. With positioning in the overbought zone, and key resistance levels near on both Nifty and Bank Nifty, it will be an interesting session. Indian markets will see only the Muhurat trading on Tuesday and will be shut on Wednesday as well. As such, today could see a surge, then profit booking led fall in the afternoon as positions are cut ahead of the truncated session and holiday coming up. Overall, the chance of Indian markets reaching their last year’s all-time highs is good, as the earnings downgrade cycle seems to be bottoming out. A November US trade deal seems the big catalyst that could drive Indian markets into a catch-up mode with their global peers.”
The festive season has witnessed strong consumer spending across sectors such as automobiles, white goods, clothing, gold, and silver.
Dhanteras auto and gold sales were at record highs. With 48 lakh weddings scheduled in November and December, experts expect a blockbuster consumption boost that could further lift market sentiment as Indian equities attempt to surpass their September 2024 all-time highs in October and November.
This year, Muhurat Trading 2025 will take place on October 21, Tuesday, starting at 1:45 pm and continuing for one hour. Markets will now open for trading on Thursday.
Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, said, “The NIFTY 50 is showing exceptional strength, confirmed by three consecutive strong weekly bullish candles resulting in a notable 4 per cent surge in three weeks, which clearly indicates robust and persistent buyer interest. Technically, the index has achieved a significant breakout from a 160-day Channel pattern, signaling the transition into a major new uptrend phase.”
He added, “Currently, the price is consolidating between its key resistance at 25650 and support at 24500. A decisive push and breakout above resistance would serve as the final confirmation, suggesting a clear continuation of the rally. Furthermore, the alignment of the price above all key moving averages and the sustained momentum suggests that all technical factors strongly support the potential for the sector to achieve a new All-Time High.”
Globally, investor sentiment improved as US-China trade tensions eased, with Vice Premier He Lifeng and Treasury Secretary Scott Bessent scheduled to meet this week. Meanwhile, the US government shutdown continued for the third week, already impacting around 0.3 per cent of GDP, while a Federal Reserve rate cut is expected in the upcoming meeting.
On the geopolitical front, the meeting between President Donald Trump and President Volodymyr Zelensky in Washington failed to yield progress, as Trump pressed Zelensky to accept Putin’s terms for peace. European nations reiterated their “unwavering commitment to Ukraine” amid ongoing tensions.
In other Asian markets, Japan’s Nikkei surged 2.97 per cent, Hong Kong’s Hang Seng index jumped 2.6 per cent, Taiwan’s weighted index gained 1.46 per cent, and South Korea’s KOSPI rose 1.39 per cent, reflecting a broadly positive mood across the region.
(With inputs from ANI)
