Indian Markets Recover as FIIs Drive Blue-Chip Buying

Post by : Bianca Suleiman

Mumbai: The Indian share market started the week on a positive note, with both the Sensex and Nifty rebounding after three days of losses. This recovery was fueled by encouraging signals from Asian markets and renewed investments in prominent blue-chip companies.

The 30-share BSE Sensex rose by 267.74 points, equivalent to 0.32%, reaching 83,484.02. Meanwhile, the 50-share NSE Nifty increased by 84.90 points, or 0.33%, to stand at 25,577.20 during the early trading hours.

Key Contributors on the Day

Within the Sensex, companies like Asian Paints, Bharat Electronics, Larsen & Toubro, Titan, Reliance Industries, Tata Motors, Infosys, Bajaj Finserv, Axis Bank, Bajaj Finance, ITC, and Bharti Airtel were the primary gainers.

Conversely, stocks such as Trent Ltd, Power Grid, Mahindra & Mahindra, NTPC, State Bank of India, Adani Ports, and UltraTech Cement faced selling pressure, causing slight declines in the index.

Positive Global Indicators

The Asian markets lent support, with South Korea’s Kospi surging by 3%, Japan’s Nikkei climbing nearly 1%, and Hong Kong’s Hang Seng increasing by 0.47%. The Shanghai Composite Index, however, traded a bit lower. On Friday, the US markets primarily closed higher, further bolstering the confidence of local investors.

Strong Demand from Foreign and Domestic Investors

Foreign Institutional Investors (FIIs) were active buyers, pouring in Rs 4,581.34 crore into equities on Friday. Domestic Institutional Investors (DIIs) also contributed significantly with purchases amounting to Rs 6,674.77 crore, showcasing persistent interest in the Indian market.

Commodity Market Impact

Brent crude oil prices increased by 0.64%, reaching USD 64.04 per barrel, which slightly affected energy stocks but did little to dampen overall market optimism.

Following a minor decrease on Friday, where the Sensex fell by 94.73 points and the Nifty dipped by 17.40 points, the markets are now regaining momentum at the start of the week, propelled by foreign investments and robust performance in blue-chip sectors.