Sensex, Nifty Open Higher on Monday as Global Rally and FII Buying Lift Sentiment
Indian equity benchmarks started the week on a strong footing on Monday, buoyed by positive global cues and renewed buying by foreign investors, raising expectations...
Indian equity benchmarks started the week on a strong footing on Monday, buoyed by positive global cues and renewed buying by foreign investors, raising expectations of a potential year-end rally in domestic markets.
In early trade, the BSE Sensex surged 482.7 points, or 0.56 per cent, to 85,412.06, while the NSE Nifty 50 advanced 160.2 points, or 0.61 per cent, to 26,126.60.
IT, Metal Stocks Lead Gains
Buying interest was broad-based, with heavyweight stocks providing strong support to the indices. Among the Sensex constituents, Infosys, Tata Steel, Tech Mahindra, Trent, HCL Technologies and Bharti Airtel emerged as the top gainers.
On the downside, UltraTech Cement and Power Grid Corporation were the only Sensex stocks trading in the red during early hours.
Global Markets Provide Tailwinds
Asian markets traded firmly, mirroring optimism across global equities. South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng were all trading higher.
U.S. equities had also closed on a positive note on Friday, lending further support to risk sentiment in Asian trading hours.
Foreign, Domestic Investors Boost Confidence
Market sentiment was strengthened by sustained institutional participation. According to exchange data, Foreign Institutional Investors (FIIs) bought equities worth ₹1,830.89 crore on Friday, marking a continuation of their recent return to buying after a prolonged selling phase.
At the same time, Domestic Institutional Investors (DIIs) remained strong supporters of the market, purchasing shares worth ₹5,722.89 crore in the previous session.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the market appears to be entering a year-end rally phase. He pointed to the recent strengthening of the rupee and FIIs turning net buyers as key factors that could accelerate gains. According to him, these developments may trigger short covering, pushing benchmark indices to new highs.
Echoing similar views, Ponmudi R, CEO of online trading and wealth-tech firm Enrich Money, said consistent DII inflows have been absorbing intermittent selling pressure, while the return of FIIs has added an extra layer of confidence to the market.
Oil Prices Edge Higher
In commodities, Brent crude oil, the global benchmark, rose 0.73 per cent to $60.91 per barrel, a move closely watched by Indian markets given the country’s dependence on oil imports.
Previous Session Recap
On Friday, December 19, Indian equities ended sharply higher. The Sensex rose 447.55 points, or 0.53 per cent, to close at 84,929.36, while the Nifty gained 150.85 points, or 0.58 per cent, to settle at 25,966.40.
With supportive global trends and strong institutional flows, analysts say markets may remain upbeat in the near term, though investors are likely to stay alert to currency movements and global macroeconomic cues.