Indian equity markets began the trading week on a buoyant note on Monday, September 21, as the benchmark Sensex and Nifty50 held firm in positive territory following an improvement in broader risk appetite. The upward momentum was underpinned by easing international crude oil prices, supportive cues from peer Asian markets, and fresh equity purchases by foreign portfolio investors. Coming after a stretch of volatile trading sessions, the initial gains provided welcome relief to market participants, who are now closely tracking global crude trajectories, foreign fund movements, and international developments to gauge the durability of this recovery.
Benchmark Indices Post Broad Gains in Morning Trade
By 11:39 am, the BSE Sensex was changing hands at 74,749.39, recording a rise of 454.43 points or 0.61% against the previous session close of 74,294.96. The 30-share gauge had opened higher at 74,535.18 and climbed to an intraday peak of 74,790.21, after having touched an intraday trough of 74,454.18 during the early hours of trade.
Similarly, the broader NSE Nifty50 displayed constructive strength, advancing 52.15 points or 0.22% to reach 23,398.55. The 50-stock index began the morning session at 23,330.20, pushed upward to hit an intraday high of 23,410.75, and tested an intraday low of 23,314.80. The steady opening enabled the indices to maintain their footing near critical psychological thresholds.
Cooling Brent Crude Prices Alleviate Input Cost Concerns
A key macroeconomic catalyst driving market optimism was the slide in international crude oil benchmarks. Brent crude declined 2.25% to trade at $101.5 per barrel, offering immediate respite to net oil-importing economies such as India. Softer energy prices directly ease domestic worries regarding imported inflation, raw material expenditures, and foreign exchange reserves, making the price drop a major macro trigger for equity markets.
The moderation in petroleum prices immediately drew investor interest toward cost-sensitive sectors, especially paints, aviation, and cement, where fuel and petroleum derivatives constitute a significant portion of operating expenses. Bolstered by the decline in crude values, shares of Asian Paints, InterGlobe Aviation, and UltraTech Cement witnessed noticeable buying demand during early morning trade, helping propel sectoral indices higher.
Foreign Institutional Buying Returns to Support Large Caps
The market also drew strength from an inflow of foreign capital, reversing recent selling pressure that had weighed on domestic bourses. Foreign institutional investors turned net buyers on Friday, purchasing Indian equities worth Rs 599.54 crore. The resumption of institutional buying provided crucial support to heavyweights across the board.
Institutional fund flows serve as a principal determinant for the direction of major indices and large-cap counters, especially in sectors with heavy representation such as banking and finance, information technology, and energy. While the initial turnaround in foreign participation lifted market sentiment on Monday, traders and fund managers will closely observe whether these institutional inflows sustain through the remaining sessions of the week.
Supportive Overseas Markets and Technical Chart Formations
Positive regional momentum across Asia offered additional tailwinds to the domestic session. Major Asian bourses traded in positive territory on Monday morning, with South Korea's Kospi, Shanghai's SSE Composite, and Hong Kong's Hang Seng showing gains, following a mostly positive finish for US equities on Friday. While risk sentiment opened firmly, market participants continue to keep an eye on international geopolitical developments, including upcoming high-level US-China discussions and ongoing frictions in the Middle East, which could introduce fresh volatility into oil and commodity prices.
On technical charts, analysts observed encouraging bottoming patterns following recent market corrections. Bajaj Broking Research noted that the index formed a small bullish candle featuring a higher high and higher low structure, indicating a continuing pullback from heavily oversold conditions. Ongoing consolidation near the 61.8% retracement level of the recent swing between 22,182 and 24,774 suggests potential base formation at lower price zones, while daily and weekly oscillators in oversold territory leave room for the pullback to extend in subsequent sessions.
