Indian equity benchmarks surged in early trade on Monday, tracking positive global cues and sustained buying by foreign institutional investors (FIIs). The BSE Sensex jumped over 500 points to trade above 82,800, while the NSE Nifty crossed the 25,300 mark, gaining around 150 points.
Market Movers
Among the top gainers on the Sensex were Mahindra & Mahindra, Tata Motors, and Reliance Industries, each rising over 1%. Banking stocks also contributed to the rally, with HDFC Bank and ICICI Bank trading in the green. On the other hand, IT stocks like Infosys and TCS saw mild profit booking.
Global Cues
Asian markets traded higher following a strong close on Wall Street last Friday. The US Dow Jones and S&P 500 hit fresh record highs, buoyed by optimism over interest rate cuts. Japan's Nikkei and Hong Kong's Hang Seng were also up in early trade.
FII Activity
Foreign institutional investors have been net buyers in the Indian equity markets for the past few sessions, adding to the positive sentiment. According to provisional data, FIIs purchased equities worth over Rs 2,000 crore in the previous trading session.
Broader Markets
The broader markets also witnessed buying interest, with the BSE Midcap and Smallcap indices rising over 0.5% each. Market breadth was positive, with more than 1,500 stocks advancing on the BSE compared to 800 declines.
Outlook
Analysts expect the market to remain volatile in the near term due to global economic uncertainties and domestic inflation data. However, sustained FII inflows and strong corporate earnings could provide support to the indices.
