Indian Indices Open Higher Amid Strong Buying in US, China Markets

Indian benchmark indices started positively on Monday, diverging from the previous week’s downward trend, buoyed by robust buying in the US and China markets. As of 9:30 am, the Sensex surged by 507 points, or 0.60 percent, reaching 84,436, while the Nifty climbed by 165 points, or 0.64 percent, to 26,132. The broader cap indices mirrored the main indices, with the Nifty Midcap 100 rising by 0.58 percent and the Nifty Smallcap 100 increasing by 0.51 percent. Notable gainers in the Nifty Pack included Hindalco, Tech Mahindra, and TCS, while Asian Paints, Bajaj Finance, Max Healthcare, and Cipla were among the losers. Across the NSE, all sectoral indices were in positive territory, with metal, IT, and media sectors leading the gains at around 1.48 percent, 1.23 percent, and 0.77 percent, respectively. Analysts suggested a potential year-end rally, citing the rupee’s rebound and FIIs’ cash market investments as factors that could drive benchmark indices higher through short covering. They also highlighted the favorable domestic economic conditions and the possibility of an uptrend in earnings growth supporting a market upswing. In the US, markets closed mostly higher on the previous trading day, with Nasdaq up by 1.31 percent, the S&P 500 by 0.88 percent, and the Dow by 0.38 percent. Meanwhile, Asian markets saw gains as China’s central bank maintained its loan prime rates, with China’s Shanghai index rising by 0.64 percent, Japan’s Nikkei by 1.75 percent, and South Korea’s Kospi by 1.72 percent, while Shenzhen dropped by 1.36 percent and Hong Kong’s Hang Seng Index added 0.29 percent. Foreign institutional investors sold equities worth Rs 2,387 crore on Friday, whereas domestic institutional investors bought equities worth Rs 5,200 crore.