Mumbai: Indian stock markets began Monday’s session on a positive note, with benchmark indices recording significant gains driven by investor optimism following India’s advancement in global economic rankings.
By approximately 9:32 AM, the Sensex had climbed 640.3 points, representing a 0.78% increase to reach 82,361.46. The Nifty gained 187.39 points or 0.75% to touch 25,040.45. Banking stocks also performed well, with Nifty Bank advancing 408.25 points or 0.74% to 55,806.50.
Mid-cap and small-cap segments showed similar strength, with the Nifty Midcap 100 index rising 426.60 points or 0.75% to 57,114.35, while the Nifty Smallcap 100 index increased by 145.90 points or 0.83% to reach 17,789.25.
Market experts suggest that India’s achievement of becoming the world’s fourth-largest economy has provided a temporary confidence boost to investors. Additionally, the Reserve Bank of India’s substantial dividend transfer to the government, which exceeded budgetary projections, is expected to help maintain the fiscal deficit target of 4.4% for FY26.
VK Vijayakumar, Chief Investment Strategist of Geojit Investments Limited, noted that this development could maintain the current trends of low inflation and decreasing interest rates, providing continued support to equity markets. However, he cautioned that foreign institutional investor flows, which were robust in early May, have recently become unpredictable, suggesting possible profit-taking at elevated levels.
Among Sensex constituents, M&M, PowerGrid, NTPC, Tata Motors, ICICI Bank, SBI, Tech Mahindra, L&T, Asian Paints, and Axis Bank emerged as the leading gainers. Eternal was the sole major decliner in the index.
Regional Asian markets presented a mixed picture, with Bangkok, Seoul, and Japan trading positively, while China, Hong Kong, and Jakarta showed declines.
US markets concluded the previous session with losses across major indices. The Dow Jones fell 256.02 points or 0.61% to close at 41,603.07. The S&P 500 dropped 39.19 points or 0.67% to 5,802.82, and the Nasdaq declined 188.53 points or 1.00% to finish at 18,737.21.
Institutional activity showed foreign institutional investors as net purchasers, acquiring equities worth ₹1,794.59 crore on May 23. Domestic institutional investors also remained active buyers, purchasing stocks valued at ₹299.78 crore.
Market watchers indicate that several key economic releases this week could influence trading sentiment, including India’s GDP growth figures, minutes from the US Federal Reserve meeting, and American inflation data.
Devarsh Vakil, Head of Prime Research of HDFC Securities, identified multiple factors currently driving market volatility, including geopolitical tensions, the ongoing corporate earnings season, institutional money flows, and upcoming derivatives contract expirations.