Indian Stock Market Opens Higher as Sensex and Nifty Gain

Indian equities began trading on Monday, January 6, with a slight upward movement, influenced by mixed trends from Asian markets. The Sensex saw an increase of 94.07 points, or 0.12 percent, reaching 79,317.18, while the Nifty50 index was up by 21.45 points, or 0.09 percent, standing at 24,026.2. In contrast, broader market indices demonstrated slightly stronger gains than these headline indices.

Across various sectors, the trading activity showed mixed results. Stocks in the IT, Realty, and Consumer Durables sectors exhibited gains, rising by up to 0.9 percent. Conversely, the PSU Bank and metal sectors lagged behind, with the PSU Bank index declining by 1.63 percent.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on market dynamics, stating, "The market may experience a mix of negative factors impacting Foreign Institutional Investor (FII) flows, along with some positive domestic elements that could bolster the market. The external environment remains challenging, with the dollar index at 109 and the 10-year US bond yield at 4.62 percent. Sell-offs by FIIs are likely to continue until bond yields decrease and the dollar stabilizes."

Stocks to Watch

ITC: This company is in the spotlight today as its shares are trading ex-demerger. There will be a special pre-opening session to indirectly assess the pricing of ITC Hotels.

HDFC Bank: Shares of this private lender are being monitored after the release of its Q3 business update. For the December quarter, HDFC Bank's loan-to-deposit ratio (LDR) showed a decrease to 99.2 percent, down from 100.76 percent in the previous quarter.

Bank of Baroda: This bank reported an 11.7 percent growth in its global business, reaching Rs 25.64 lakh crore during the October-December quarter.

Nykaa: The fashion e-commerce firm stated in its revenue report that it has experienced strong performance in Q3 FY2025, expecting a consolidated net revenue growth surpassing mid-twenties.

Technical Analysis

Anand James, Chief Market Strategist at Geojit Financial Services, provided insights on market trends. He noted, "Bargain hunting emerged as prices dipped into the range of 24090-23960, retracing nearly 50% of Thursday’s gains. However, the subsequent lack of momentum raises caution. We maintain our view within the range of 24400-540-770, as long as the index stays above 23900/860." He added that falling below these levels may attract lower prices around 23750, yet he does not foresee an immediate collapse.

Asian Market Trends

The broader MSCI Asia ex Japan index reported a gain of 0.66 percent, reaching 572.8. However, most Asian stocks traded lower ahead of significant economic data set to be released this week. Notably, Japan's Nikkei index fell by 1.33 percent, while Singapore's Straits Times index increased by approximately 0.3 percent.

equities, markets, stocks