Cautious Opening for Global Markets Amid US Election Uncertainty

Stock markets opened slightly higher but remain cautious due to geopolitical risks and the upcoming US presidential election. While sectoral indices in India saw gains, challenges persist with potential selling pressures and international market volatility. Key players prepared to announce quarterly results may influence market shifts.

This week began with global stock markets treading carefully as indices showed modest gains on Monday. The Nifty index rose by 59.20 points, opening at 25,023, while the BSE Sensex increased by 0.24 percent, gaining 195 points to start at 81,576.93.

Experts highlighted diminishing effects of Chinese economic stimulus amid ongoing geopolitical concerns, notably around the impending US presidential election causing widespread market volatility. Ajay Bagga, a banking and market expert, noted the historical pattern of October playing into the US election cycle, suggesting volatility and a potential relief rally post the November 5 vote.

On the National Stock Exchange, all sector indices reported gains, with Nifty Media surging by 0.55 percent. As major companies like Reliance Industries and HCL Technologies prepare to report quarterly results, market dynamics may shift. Analyst Soni Patnaik warned of possible selling pressures unless Nifty surpasses the 25,300 level, with support risks breaking towards 24,300.

(With inputs from agencies.)