Markets climb in early trade on positive global trends

Mumbai : Stock market indexes Sensex and Nifty saw an increase at the start of trading on Monday due to purchasing of banking and financial shares, following a positive trend in global stock markets. In the early trading session, the BSE Sensex, consisting of 30 shares, surged by 460.38 points or 0.57 pc  to reach 81,841.74. The NSE Nifty increased by 138.80 points, which is equivalent to a 0.56 percent rise, reaching 25,103.05. Larsen & Toubro, JSW Steel, HDFC Bank, Tech Mahindra, Adani Ports & Special Economic Zone, IndusInd Bank, NTPC, and Infosys were the winners among the 30 Sensex companies. On the other hand, Axis Bank, Bajaj Finance, UltraTech Cement, Maruti Suzuki India, Tata Consultancy Services (TCS), Asian Paints, Nestle India, and Hindustan Unilever were some of the underperformers.

According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 4,162.66 crore on Friday, while Domestic Institutional Investors (DIIs) purchased equities worth Rs 3,730.87 crore. In October until the 11th, foreign portfolio investors have offloaded equity worth Rs 58,710 crore. The market was not significantly affected by the large-scale selling because Domestic Institutional Investors (DIIs) have absorbed all Foreign Portfolio Investors (FPI) selling and continue to receive steady fund inflows. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that the pattern of FII selling and DII buying is expected to continue in the short run due to the lower prices of Chinese stocks compared to the higher valuations in India.

In Asian markets, Tokyo, Shanghai, and Seoul were experiencing gains, while Hong Kong was seeing losses. There is a high chance that IT and banking stocks will continue to stay strong due to anticipated positive second quarter results. Nonetheless, Vijayakumar mentioned that there is restricted potential for the market to increase significantly at this point. Friday saw the Wall Street closing with an increase in value. The upcoming US presidential elections and geopolitical tensions are expected to impact markets.