Summary of this article
Sensex, Nifty remained volatile, while broader markets outperformed in early trade
Crude oil prices fell amid hopes of improved supplies and easing geopolitical tensions
The rupee strengthened after RBI measures to curb dollar demand and speculative currency positions
Stock Market Today: Indian equity benchmarks swung between gains and losses on Monday as volatility persisted, with investors assessing global cues after Friday’s end to the market’s longest weekly losing streak in 25 years.
The BSE Sensex and NSE Nifty 50 opened higher, slipped into negative territory and subsequently recovered to trade in the green. At 9:31 am, the Sensex was up 47.86 points, or 0.07 per cent, at 72,520.19, while the Nifty 50 gained 39.20 points, or 0.17 per cent, to 22,559.65.
Broader markets outperformed the benchmark indices in early trade. The Nifty Midcap 100 rose nearly 0.40 per cent, while the Nifty Smallcap 100 advanced 1.25 per cent. The Nifty Microcap 250 gained 1 per cent. Auto stocks led the gains in the morning session.
Among Nifty 50 constituents, Bajaj Auto surged over 3 per cent, leading the gainers. Dr Reddy’s Laboratories, Mahindra & Mahindra, Eicher Motors, Bharat Electronics, BSE and JSW Steel advanced 1-2 per cent each.
On the losing side, Tech Mahindra, Bharti Airtel, ITC, State Bank of India and NTPC fell 1-3 per cent each.
Among sectoral indices, Nifty Media led the gains, rising nearly 3 per cent, followed by Nifty Auto, which climbed 1.30 per cent. Nifty Realty, Nifty Chemicals and Nifty Metal also traded higher.
In contrast, Nifty Bank fell 0.50 per cent, slipping below the 55,000 mark. Nifty PSU Bank, Nifty Private Bank and Nifty Financial Services also traded in the red. Nifty IT and Nifty FMCG were among the other sectoral laggards.
Market breadth favoured the bulls. Of the 3,355 stocks traded, 2,129 advanced, 1,108 declined and 118 remained unchanged.
Russia-Ukraine Energy Ceasefire
Crude oil prices fell on October 12 amid hopes of improved supplies after US President Donald Trump announced an energy ceasefire between Russia and Ukraine.
Brent crude futures for December delivery fell 1.14 per cent to $103.50 a barrel, while US West Texas Intermediate (WTI) crude futures for November declined 1.49 per cent to $90.48 a barrel.
Trump announced the energy ceasefire in a social media post on October 11, saying Russia and Ukraine had agreed not to target each other’s energy facilities.
Expectations of higher Russian energy supplies also weighed on prices. Trump said on October 9 that Russia would supply more than 4 million tonnes of diesel to the global market under a deal reached with Russian President Vladimir Putin during a phone call.
Iran-Saudi Talks
Adding to hopes of easing oil supply concerns, diplomatic outreach between Iran and Saudi Arabia raised prospects of de-escalation in the region.
Iranian Foreign Minister Abbas Araghchi spoke to his Saudi counterpart, Faisal bin Farhan bin Abdullah, to discuss the recent escalation and efforts to contain it, Saudi state news agency reported.
Araghchi also offered Iran’s help in facilitating dialogue between Saudi Arabia and Yemen’s Houthi rebels following attacks on the kingdom, Al Jazeera reported.
Rupee Strengthens After Key RBI Measures
The rupee gained after the Reserve Bank of India (RBI) announced a series of measures over the weekend to ease pressure on the currency, curb speculative positions and reduce dollar demand in the foreign exchange market.
The rupee strengthened against the dollar, with the USD/INR pair falling as much as 1.1 per cent to 95.739 before trading 0.71 per cent lower at 96.07.
On October 10, the RBI said it would meet the daily dollar requirements of three state-run oil marketing companies, Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation, through a special window. This would shift their dollar purchases away from the spot market.
The central bank also barred companies from rebooking cancelled rupee-linked foreign exchange derivative contracts, lowered the threshold for positions without underlying exposure to $5 million from $100 million and mandated a 20 per cent cash reserve against certain contracts.
The measures are aimed at easing immediate dollar demand and curbing speculative activity that has added to pressure on the rupee.
The measures come after the RBI raised the benchmark repo rate by 25 basis points to 5.5 per cent last week, its first rate hike in nearly four years. The central bank also shifted its policy stance from neutral to calibrated tightening, citing inflation risks from higher oil prices and resilient economic growth.
A stronger rupee could ease foreign investors’ concerns over currency losses and support foreign portfolio inflows.
