StockMarket – Indian Benchmarks Open Higher as Foreign Funds Return
StockMarket – Indian equities began Tuesday’s session on a firm note, extending gains from the previous day as renewed foreign investment and encouraging global signals lifted sentiment across Dalal Street. Early trade reflected cautious optimism, with benchmark indices opening in positive territory amid broader participation from mid- and small-cap counters.
Benchmarks Start in the Green
The Nifty 50 opened at 25,922.65, climbing 55.35 points, or 0.21 percent. The BSE Sensex followed a similar path, starting the day at 84,210, up 144.25 points or 0.17 percent. Traders attributed the steady start to sustained buying interest and improving confidence in domestic equities.
Market participants observed that the return of foreign portfolio investors has provided much-needed support after a period of uneven flows. Analysts also pointed to strength beyond the frontline stocks, which suggested that investors were broadening their exposure rather than concentrating solely on blue-chip shares.
Foreign Buying Boosts Confidence
Ajay Bagga, a banking and market analyst, said early indicators from Indian stock futures signaled a constructive opening. He noted that foreign portfolio investors have shifted to net buying in February, contributing to consolidation in the market.
Data from the National Stock Exchange showed foreign institutional investors infused Rs 2,254.6 crore into the cash segment on Tuesday. Domestic institutional investors added Rs 4.2 crore. The combined flows reinforced the positive undertone visible in early trade.
Bagga added that expectations of increased business momentum following the US-India framework agreement on trade have helped drive sector-specific rallies. According to him, industries such as textiles, gems and jewellery, auto components, and public sector banks saw stronger buying interest as investors positioned themselves for potential gains from improved trade prospects.
Broader Market Participation Strengthens
The rally was not confined to headline indices. On the NSE, the Nifty 100 advanced 0.20 percent, while the Nifty Midcap 100 also rose by 0.20 percent. The Nifty Smallcap 100 outperformed, gaining 0.46 percent. The movement indicated that market breadth remained favorable, with investors willing to take exposure across segments.
Sectoral indices presented a mixed picture. The Nifty Auto index edged up 0.24 percent, and Nifty Pharma climbed 0.5 percent. The Nifty PSU Bank index added 0.23 percent, reflecting buying in state-run lenders.
However, certain sectors experienced mild declines. FMCG slipped 0.02 percent, IT fell 0.21 percent, and Metal eased by 0.02 percent. Analysts described the sectoral divergence as routine rotation rather than a sign of broader weakness.
Commodities and Global Markets in Focus
In the commodities market, gold prices remained elevated at Rs 1,57,255 per 10 grams for 24 karat. Silver prices, however, declined by 1.5 percent to Rs 2,59,167 per kilogram. Bagga observed that investors were selectively buying on dips in precious metals, while cryptocurrencies also witnessed tentative recovery with fresh inflows.
Global cues offered additional support. In the United States, the S&P 500 closed 0.47 percent higher, while the Nasdaq gained 0.97 percent on Monday. The Dow Jones Industrial Average touched another record level. Asian markets mirrored the strength, with Japanese equities trading firm. At the same time, there was some moderation in demand for large US technology stocks.
Oil prices briefly moved higher after a warning from the United States urging ships to avoid Iranian waters in the Strait of Hormuz. The development added a geopolitical dimension to global trade, though markets appeared to absorb the news without significant disruption.
Overall, Tuesday’s opening reflected a blend of supportive foreign inflows, sectoral rotation, and stable global signals. Investors are expected to monitor fund flows, trade developments, and commodity prices closely as the trading week progresses.