Indian stock market opens higher, Sensex surges 640 points
Indian stock market opens higher, Sensex surges 640 points
The domestic benchmark indices opened higher on Monday as India achieving a new high in the world’s largest economy ranking boosted investors’ sentiment
MUMBAI — The domestic benchmark indices opened higher on Monday as India
achieving a new high in the world’s largest economy ranking boosted investors’
sentiment.
At around 9.32 am, Sensex was trading 640.3 points or
0.78 per cent up at 82,361.46 while the Nifty added 187.39 point or 0.75 per
cent at 25,040.45.
Nifty Bank was up 408.25 points or 0.74 per cent at
55,806.50 The Nifty Midcap 100 index was trading at 57,114.35 after rising
426.60 points or 0.75 per cent. Nifty Smallcap 100 index was at 17,789.25 after
climbing 145.90 points or 0.83 per cent.
According to analysts, news of India becoming the fourth
largest economy in the world would be a near-term morale boost for the market.
The RBI’s bumper dividend payment to the government
exceeding the budget estimates will also help contain the fiscal deficit target
for FY26 at 4.4 per cent.
"This, in turn, can sustain the low inflation and
declining interest rate trend, which will continue to support the equity
market. FII inflows which have been strong in early May have turned erratic
recently indicating potential selling at higher levels," said VK
Vijayakumar, Chief Investment Strategist of Geojit Investments Limited.
Meanwhile, in the Sensex pack, M&M, PowerGrid,
NTPC, Tata Motors, ICICI Bank, SBI, Tech Mahindra, L&T, Asian Paints
and Axis Bank were the top gainers. Whereas, only Eternal was the top loser.
In the Asian markets, Bangkok, Seoul and Japan were
trading in green. China, Hong Kong and Jakarta were trading in red.
In the last trading session, Dow Jones in the US closed
at 41,603.07, down 256.02 points, or 0.61 per cent. The S&P 500 ended
with a loss of 39.19 points, or 0.67 per cent, at 5,802.82 and the Nasdaq
closed at 18,737.21, down 188.53 points, or 1.00 per cent.
On the institutional front, foreign institutional
investors (FIIs) were net buyers as they bought equities worth 1,794.59 crore
on May 23, while domestic institutional investors (DIIs) purchased equities
worth 299.78 crore.
India's GDP growth data, US Federal Reserve meeting
minutes, and US inflation figures represent essential economic indicators
scheduled for release this week that could significantly impact market
sentiment, said experts.
"Geopolitical uncertainties, the ongoing earnings
season, institutional capital flows, and derivatives expiry dates are serving
as the primary drivers of volatility in Indian equity markets during this
period," said Devarsh Vakil, Head of Prime Research of HDFC Securities.
