Sensex, Nifty open higher on foreign inflows, global market rally

Benchmark indices Sensex and Nifty opened higher on Monday, supported by foreign fund inflows, strong global cues and sustained domestic institutional buying, fuelling optimism of a year-end rally as IT and metal stocks led the gains.

Mumbai: Equity benchmark indices Sensex and Nifty began Monday’s trade on an optimistic note as investors’ sentiment remained positive amid foreign fund inflows and a rally in global markets.

The 30-share BSE Sensex jumped 482.7 points or 0.56 per cent to 85,412.06 in early trade. The 50-share NSE Nifty climbed 160.2 points or 0.61 per cent to 26,126.60.

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From the 30-Sensex firms, Infosys, Tata Steel, Tech Mahindra, Trent, HCL Tech and Bharti Airtel were among the biggest gainers.

However, UltraTech Cement and Power Grid were the only laggards.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index traded in positive territory.

US markets ended higher on Friday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,830.89 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs) also bought equities worth Rs 5,722.89 crore in the previous trade.

“It appears that the market is heading for a year end rally. Two factors that can accelerate this rally are the sharp reversal in the rupee and the FIIs turning buyers in the cash market. These two factors which are mutually reinforcing can trigger short covering in the market helping the benchmark indices to scale higher highs,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Brent crude, the global oil benchmark, climbed 0.73 per cent to USD 60.91 per barrel.

“While sustained DII participation continues to effectively absorb intermittent bouts of selling pressure, FIIs turning net buyers after a prolonged phase of outflows has provided an additional boost to market confidence,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

On Friday, the Sensex jumped 447.55 points or 0.53 per cent to settle at 84,929.36. The Nifty climbed 150.85 points or 0.58 per cent to 25,966.40.