Mumbai: The Indian stock market opened on a positive note on Monday, driven by upbeat investor sentiment following India’s rise in the global economy rankings.
Benchmark Indices Rally Strongly
At 9:32 AM, the Sensex was trading 640.3 points higher or 0.78% up at 82,361.46, while the Nifty surged 187.39 points or 0.75% to reach 25,040.45.
- Nifty Bank gained 408.25 points or 0.74%, standing at 55,806.50
- Nifty Midcap 100 rose 426.60 points or 0.75% to 57,114.35
- Nifty Smallcap 100 climbed 145.90 points or 0.83% to 17,789.25
Economic Factors Boosting Market Sentiment
Analysts attributed the rally to the news of India becoming the fourth-largest economy in the world, providing a strong morale boost for investors.
In addition, the RBI’s bumper dividend to the government—exceeding budget estimates—is expected to help contain the fiscal deficit target for FY26 at 4.4%.
“This can sustain the low inflation and declining interest rate trend, which will continue to support the equity market,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
However, he added that FII inflows, although strong earlier in May, have become erratic—indicating possible profit booking at higher levels.
Top Gainers and Losers
Among Sensex stocks, the top gainers included:
- M&M
- PowerGrid
- NTPC
- Tata Motors
- ICICI Bank
- SBI
- Tech Mahindra
- L&T
- Asian Paints
- Axis Bank
The only loser in the pack was Eternal.
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Mixed Trends in Global Markets
In the broader Asian markets:
- Bangkok, Seoul, and Japan were trading in the green
- China, Hong Kong, and Jakarta were trading in the red
In the US market, the previous session ended negatively:
- Dow Jones closed at 41,603.07, down 256.02 points (0.61%)
- S&P 500 lost 39.19 points (0.67%), ending at 5,802.82
- Nasdaq declined 188.53 points (1.00%), closing at 18,737.21
Institutional Activity and Economic Outlook
On May 23, Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth ₹1,794.59 crore, while Domestic Institutional Investors (DIIs) bought equities worth ₹299.78 crore.
Experts noted that upcoming events such as:
- India’s GDP growth data
- US Federal Reserve meeting minutes
- US inflation figures
…are key economic indicators that may influence market direction this week.
Market Volatility Drivers
According to Devarsh Vakil, Head of Prime Research at HDFC Securities:
“Geopolitical uncertainties, the ongoing earnings season, institutional capital flows, and derivatives expiry dates are serving as the primary drivers of volatility in Indian equity markets during this period.”