Indian equity markets opened higher on Monday, buoyed by positive global sentiment and optimism over easing trade tensions between the US and China. Tracking firm cues from Asian peers, benchmark indices began the week in the green, with both Nifty50 and Sensex registering modest gains.
At 9:17 AM, the Nifty50 was trading at 25,865.95, up 71 points or 0.27%, while the BSE Sensex gained 227 points to reach 84,439.21. Market participants attributed the upbeat opening to strong foreign inflows, improving domestic growth indicators, and renewed global optimism.
Market experts believe that Indian equities may continue to trade within a range this week, guided by global factors, second-quarter earnings announcements, and foreign institutional investor activity. “The global market construct is bullish. With Dow Jones, Nikkei, and Kospi at record highs, sentiments are strong,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He added that the recent statements by US Treasury Secretary Scott Essent about a “substantial framework for trade negotiations with China” have further lifted investor confidence worldwide.
Domestically, the fundamentals remain robust, supported by brisk festival season sales and signs of recovery in private sector capital spending. “This long-awaited uptrend has significant positive implications for India’s growth and stock market outlook. Conditions are favorable for Nifty and Sensex to scale new record highs. The ongoing rally, largely driven by short covering and sustained liquidity, still has some more room to go,” Vijayakumar said.
Global equity sentiment also remains positive, with the S&P 500 and Nasdaq recording their best weekly performances since August, while the Dow Jones achieved its largest weekly gain since June. Across Asia, expectations of a breakthrough in US-China trade talks have spurred broad-based buying in stocks, oil, copper, and China-linked currencies such as the Australian dollar. In contrast, gold and US Treasuries witnessed mild declines as investors shifted towards riskier assets.
Crude oil prices edged higher in early Monday trade, reflecting optimism from the ongoing trade discussions between Washington and Beijing. Meanwhile, foreign portfolio investors (FPIs) continued their buying spree, purchasing shares worth ₹621 crore net on Friday, while domestic institutional investors (DIIs) recorded net buying of ₹173 crore.
Analysts expect the near-term market momentum to remain positive, bolstered by corporate earnings and strong foreign inflows. However, they caution that intermittent profit booking cannot be ruled out as indices approach record levels.
Overall, with global optimism, improving domestic demand, and strong investor participation, Indian equities appear poised to maintain their upward trajectory, even as traders keep a close watch on global trade developments and inflation cues.
