Mumbai: Indian stock markets opened on a flat note on Monday, reflecting cautious optimism amid positive global cues and easing geopolitical tensions. The BSE Sensex stayed above the 84,000 marks, supported by gains in PSU banks and IT stocks.
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Sensex and Nifty Open Flat Amid Global Positivity
At 9:27 AM, the BSE Sensex was up 1.35 points at 84,057.55, while the NSE Nifty 50 gained 6.50 points or 0.03% to trade at 25,644.30. Market sentiment was buoyed by declining geopolitical tensions in West Asia, a sharp drop in Brent crude prices to $67, and encouraging signs of potential trade agreements between the US, China, and India.
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PSU Banks and IT Stocks Lead Gains
Early gains were led by public sector banks and information technology stocks, with the Nifty Bank index climbing 15.15 points to 57,459.05. The Nifty Midcap 100 index added 220.90 points (0.37%) to reach 59,606.05, while the Nifty Smallcap 100 jumped 153.35 points (0.81%) to 19,130.15.
Market Experts Caution on Valuations
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that large-cap stocks such as HDFC Bank, ICICI Bank, Reliance Industries, and L&T have fueled the recent rally, driven by institutional buying. However, he cautioned that while it makes sense to stay invested in the ongoing bull market, new investments at elevated valuations may carry risks.
Top Gainers and Losers on Sensex
In early trade, the top gainers on the Sensex included:
- Trent
- SBI
- L&T
- Eternal
- Axis Bank
- Hindustan Unilever Limited
Major laggards included:
- M&M
- Kotak Mahindra Bank
- Bharti Airtel
- HDFC Bank
- NTPC
- UltraTech Cement
FII Buying Continues Amid Weak Dollar Index
The weakened U.S. dollar index has supported continued foreign institutional investor (FII) inflows. On June 27, FIIs were net buyers, purchasing equities worth ₹1,397.02 crore, while domestic institutional investors (DIIs) sold equities worth ₹588.93 crore.
Asian Markets Trade Mixed; Wall Street Ends Higher
Asian equities showed mixed performance:
- China, Japan, Bangkok, Seoul, and Jakarta were in the green
- Hong Kong was the only major Asian market trading in the red
Meanwhile, U.S. markets ended Friday on a strong note:
- Dow Jones closed at 43,819.27 (+432.43 points | +1.00%)
- S&P 500 gained 32.05 points to end at 6,173.07
- Nasdaq rose 105.55 points to close at 20,273.46