The Indian stock market opened on the green mark on Monday. Stock market benchmark indices Sensex and Nifty opened on a positive note on Monday due to inflow of foreign funds, rally in Asian markets and optimism generated after the new trade agreement between India and the US.
In early trade, the 30-share Sensex rose 415.97 points to 83,996.37. Whereas Nifty of 50 shares increased by 126.05 points to reach 25,819.75. In early trade, the rupee rose by 21 paise to 90.44 against the US dollar.
Condition of Sensex companies
Among the 30 Sensex stocks, State Bank of India, Titan, Eternal, Kotak Mahindra Bank, Bharat Electronics Ltd, Tata Steel, Sun Pharmaceuticals, Larsen & Toubro, Adani Ports, IndiGo, Reliance Industries and Bharti Airtel were among the gainers. On the other hand, PowerGrid, ITC, Hindustan Unilever, Bajaj Finance, Trent, Infosys, ICICI Bank, Axis Bank, NTPC, Tech Mahindra, Tata Consultancy Services and HDFC Bank were among the laggards.
Foreign investors bought in the last trading days
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said that a big positive for the market is that FIIs (Financial Second World Investors) who were continuously selling in the market, have bought in the cash market in three out of the last four trading days. Persistent presence of huge net short positions in the derivatives market may boost the market on expectations of short covering.
He further said that the recent ‘man-made crisis’ will continue to impact market sentiments in the IT sector. On the contrary, banking stocks are likely to gain momentum on news of improvement in credit growth, which will have a positive impact on GDP growth and corporate earnings in FY2027.
There was a rise in Asian markets
In Asian markets, Japan’s Nikkei 225, South Korea’s Kospi, Shanghai’s SSE Composite Index and Hong Kong’s Hang Seng Index are trading higher. US markets closed with a gain of more than 2 percent on Friday.
Impact of ongoing political consequences in Japan visible
Devarsh Vakil, head of Prime Research at HDFC Securities, said Japan’s ruling Liberal Democratic Party led by Sanae Takaichi won a decisive victory, sending the Nikkei to a record high.
Indian stocks are likely to benefit from the shift of Japanese capital away from China under Takaichi’s “economic security” policy, and billions of dollars of foreign direct investment are expected to flow into the Indian infrastructure and technology sectors, he said.
Impact of India-US trade agreement also visible
The lawyer further said that India and the US on Saturday reached an interim trade agreement, ending their ten-month-long tariff war, in which Washington reduced tariffs on Indian goods from 50 per cent to 18 per cent.
India successfully protected sensitive agricultural sectors such as dairy, as well as committed to purchasing US goods worth US$500 billion over five years, focusing on energy, aircraft and defense technology.
He further said that the agreement strategically integrates India into the US-led “Pax Silica” initiative for critical minerals and AI supply chains, thereby positioning India as a counterbalance to China in the Indo-Pacific region.
The price of Brent crude fell to US $ 67.41 per barrel.
Global oil benchmark Brent crude fell 0.94 percent to US $ 67.41 per barrel. According to exchange data, foreign institutional investors bought shares worth Rs 1,950.77 crore on Friday. On Friday, the 30-share BSE Sensex closed 266.47 points higher at 83,580.40, while the NSE Nifty ended 50.90 points higher at 25,693.70.
