Sensex, Nifty witness upsurge in early trade. Here's why
&imwidth=600&imheight=450&format=webp&quality=medium "Sensex, Nifty witness upsurge in early trade. Here's why")
The Bombay Stock Exchange Photograph: (ANI file)
Sensex, Nifty rise: The markets have been underperforming for the past 13 months due to external pressures such as tariffs, foreign institutional investor (FII) selling, and high valuations.
India's stock exchanges witnessed an upsurge on Monday as the indices reactedpositively to strong global cues and buying in banking shares. At 11.15 am, Sensex rose to 398.88 points to 81,606.05, and Nifty registered a growth of 119.30 points, reaching 25,013.55.
Why did the market indices rise during early trade?
Due to the strong second-quarter business updates from HDFC Bank and Kotak Mahindra Bank, investors bought banking shares.
"The quarterly business updates from public sector banks and non-bank lenders have been strong, while private sector banks too were largely in line," Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, told Reuters.
Another reason for the upsurge is that major Asian markets have been trading in green. Japan’s Nikkei 225 index and Wall Street Futures were trading high.
Also, during early trade, the rupee appreciated by five paise to 88.74 against the US dollar. It supports the confidence of foreign investors in the Indian market.
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Investors also bought IT shares.
The stock markets started flat on Monday morning.
The markets have been underperforming for the past 13 months due to external pressures such as tariffs, foreign institutional investor (FII) selling, and high valuations.
Ajay Bagga, Banking and Market Expert, told ANI, “The news in India is not so encouraging despite the minor recovery in the latter half of last week. Thirteen months are over of sheer underperformance and negative returns for the Indian markets from the all-time highs hit in September 2024. The FPI selling continued in September, and the risk is that another weak earnings quarter for Q2, 2026, will keep sentiments subdued.”
He said he isn't expecting much relief even by November. One of the reasons for this outlook is that the India-US trade deal looked distant.
"A trade deal with the US is looking like a distant prospect, and we expect limited relief by November. The EU and UK FTAs are moving slowly as well," Bagga noted.
This comes on a day when LG Electronics India Ltd's Initial Public Offering (IPO) opened for pre-apply. The price band for the IPO is fixed between Rs 1,080 and Rs 1,140 per share. The offering will open on October 7 and close on October 9, 2025.