Indian Stock Markets Open Higher on Asian Momentum and Foreign Fund Inflows
Indian equity benchmarks started the trading session on a positive note today, buoyed by strong momentum in Asian markets and significant foreign institutional investor activity. The benchmark Sensex climbed 441.77 points, representing a gain of 0.53 percent, to reach 84,022.17 in early morning trade. Similarly, the broader NSE Nifty index rose by 129 points, or 0.50 percent, to settle at 25,822.70.
Key Gainers and Losers Among Sensex Constituents
Among the 30-share Sensex pack, several major stocks witnessed notable gains. The top performers included State Bank of India, Titan Company, Eternal, Kotak Mahindra Bank, Bharat Electronics Ltd, Tata Steel, Sun Pharmaceuticals, Larsen & Toubro, Adani Ports, IndiGo, Reliance Industries, and Bharti Airtel.
Conversely, some stocks faced downward pressure during the early trading hours. The laggards in the Sensex basket were PowerGrid, ITC, Hindustan Unilever, Bajaj Finance, Trent, Infosys, ICICI Bank, Axis Bank, NTPC, Tech Mahindra, Tata Consultancy Services, and HDFC Bank.
Foreign Institutional Investors Turn Net Buyers
A significant driver of the market's upward movement was the return of foreign institutional investors as net buyers. According to the latest exchange data, FIIs purchased equities worth Rs 1,950.77 crore on Friday. This marks a notable shift in sentiment, as foreign investors had been sustained sellers in the market previously.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, commented on this development, stating, "A big positive for the market is that FIIs, who were sustained sellers in the market, have bought in the cash market in three out of the last four trading days. The fact that the derivatives market continues to be heavily net short might impart resilience to the market, on expectations of short covering."
Asian Market Rally and Political Developments
The positive opening in Indian markets was supported by a rally across key Asian indices. Japan's Nikkei 225, South Korea's Kospi, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index were all trading higher during the session.
Devarsh Vakil, Head of Prime Research at HDFC Securities, provided insights into the political developments influencing market sentiment. He noted that Japan's ruling Liberal Democratic Party, led by Sanae Takaichi, secured a decisive victory, pushing the Nikkei to record highs. Vakil highlighted that Indian equities are likely to benefit as Japanese capital shifts away from China under Takaichi's leadership, with billions in foreign direct investment expected to flow into Indian infrastructure and technology sectors as part of the 'Economic Security' policy.
Sectoral Outlook and Market Resilience
Vijayakumar also addressed sector-specific trends, noting that the recent 'Anthropic shock' will continue to influence sentiments in the information technology sector. On a more positive note, he indicated that banking stocks are likely to gain traction due to increasing credit growth, which could potentially boost GDP growth and corporate earnings in the fiscal year 2027.
The overall market optimism is further fueled by positive developments surrounding the recent India-US trade deal, which has contributed to the bullish sentiment among investors. The combination of foreign fund inflows, Asian market strength, and domestic economic factors has created a favorable environment for Indian equities at the start of the trading week.
