Domestic benchmark indices opened higher today, as India's new high in the world's largest economy ranking boosted investor confidence.
Key Highlights
- Sensex surges over 700 points as Trump postpones 50% EU tariffs, boosting investor confidence.
- Nifty crosses 25,000 mark amid global optimism; sectors like banking and auto lead the rally.
At around 9.32 a.m., the Sensex was trading 640.3 points, or 0.78 percent higher, at 82,361.46, while the Nifty was up 187.39 points, or 0.75 percent, at 25,040.45.
Nifty Bank was up 408.25 points, or 0.74%, at 55,806.50. The Nifty Midcap 100 index was trading at 57,114.35, up 426.60 points or 0.75 percent. The Nifty Smallcap 100 index was at 17,789.25, up 145.90 points or 0.83 percent.
According to analysts, news of India becoming the world's fourth largest economy would provide a near-term morale boost to the market.
The RBI's generous dividend payment to the government, which exceeded budget estimates, will also help keep the fiscal deficit target for FY26 at 4.4 percent.
As a result, the stock market will continue to be supported by the trend of low inflation and declining interest rates.The recent volatility of FII inflows, which were robust in early May, suggests that selling may be possible at higher levels, according to VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
In the meantime, M&M, PowerGrid, NTPC, Tata Motors, ICICI Bank, SBI, Tech Mahindra, L&T, Asian Paints, and Axis Bank were the leading Sensex gainers. Eternal was the only one who lost the most.
Bangkok, Seoul, and Japan were among the Asian markets trading in the green. China, Hong Kong, and Jakarta were all trading in red.
"Geopolitical uncertainties, the ongoing earnings season, institutional capital flows, and derivatives expiry dates are the primary drivers of volatility in Indian equity markets during this period," stated Devarsh Vakil, Head of Prime Research at HDFC Securities.
