Indian equity markets opened positively on Monday, led by renewed foreign portfolio investments (FPIs) and favourable sentiment stemming from India-US trade negotiations. Major indices advanced in early trade, with the Nifty 50 gaining 100 points to reach 24,447.65 and the BSE Sensex climbing 374 points to touch 80,876.92.
Market experts attributed the rally to persistent inflows from foreign investors and expectations of progress on bilateral trade talks.
|“Indian markets are getting into a zone of complacency, betting that no kinetic action will take place on Pakistan. Continued FPI flows are boosting sentiment and futures are pointing to a positive start with follow through money waiting to jump in. Geopolitical risks are the only overhang. Asian currencies are surging today with the US dollar weakening. Oil prices are falling as the Saudis bring out the old playbook of bankrupting potential production expanding investors. Oil prices are falling as a result,” said Ajay Bagga, a banking and market expert.
Sectoral indices on the NSE mostly opened in positive territory, with Nifty FMCG and Nifty IT leading the charge. However, Nifty PSU Bank and Nifty Private Bank registered marginal losses in early trade.
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Global cues added to the domestic momentum. Markets took note of updates from Warren Buffett’s annual Berkshire Hathaway meeting and remarks by US President Donald Trump over the weekend. The US Federal Reserve’s upcoming policy meeting is expected to further influence sentiment in the days ahead.
Back home, investors are also eyeing key quarterly earnings due later today. Companies scheduled to release results include Mahindra and Mahindra, Indian Hotels Company, COFORGE Limited, Computer Age Management Services, OneSource Specialty Pharma, DCM Shriram, Capri Global Capital, and Jammu and Kashmir Bank.
Sunil Gurjar, SEBI-registered research analyst and founder of Alphamojo Financial Services, noted: “Optimism regarding US-India trade negotiations spurred a return of foreign investors, driving the Nifty 50 and Sensex to their third straight week of gains, closing up 1.28 per cent and 1.64 per cent respectively. This marks a shift from their net selling activity since the benchmarks' record highs in September, now betting on India's domestic strength to navigate the global trade war.”
Meanwhile, across other Asian markets, Taiwan's weighted index declined by more than 1.5 per cent, and Singapore’s Straits Times Index traded marginally lower. Several key markets across the region remained closed for public holidays.
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