The S&P BSE Sensex advanced 0.19% to 83,376.62, up 160 points, while the NSE Nifty 50 rose 0.21% to 25,545.45, adding 53 points at the open. At around 9:38 AM, Sensex was seen 253 points or 0.31% higher at 83,470, whereas Nifty50 rose 81 pts or 0.33% to 25,573.
On the 30-stock Sensex, Asian Paints, Infosys, Titan, Reliance Industries, Tata Motors Passenger Vehicles and Bharat Electronics led the advance, gaining between 1.5% and 2%.
Broader markets also firmed up, with the midcaps and smallcaps up 0.3% each.
Bajaj Auto added 0.5%, while beauty retailer Nykaa climbed 2.7% after reporting higher profit for the September quarter.
Expert views
The dominant trend in global trade this year has been the AI trade, which has pushed up AI stock valuations to elevated valuations, though not yet in bubble territory and the strong earnings growth in U.S. has been a fundamental support to this AI trade and countries regarded as AI winners like China, South Korea and Taiwan also have benefited from this AI rally, said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.”Now, there are signs of this AI trade losing steam as evidenced by the 3% decline in Nasdaq last week. This is a healthy trend. If this trend persists without high volatility, that would make the U.S. market healthy, preempting a bubble formation and its eventual burst. Investors have to watch how this trend plays out,” said Vijayakumar.This emerging trend, if it persists, would be particularly favourable for the Indian market which didn’t participate in the AI trade, said Vijayakumar, adding that the FIIs, particularly the hedge funds, who have been consistently selling in India and taking money out for playing the AI trade, are now likely to pause and slowly reverse the AI trade in favour for non-AI trade in countries like India.
“Fortunately, the earnings growth currently happening in India and expected to gather momentum, going forward, can provide the fundamental support for a rally. Watch out for the leading names in banking and finance, telecom, capital goods, defence and automobiles,” Vijayakumar said.
FII/DII Tracker
On the institutional front, Foreign Institutional Investors (FIIs) bought equities worth a little over Rs 4,581 crore on November 7, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 6,675 crore.
Global Markets
World equities advanced on Monday as investors grew optimistic that the U.S. government shutdown could soon end, while the dollar extended losses from last week.
The U.S. Senate moved closer to a vote on reopening the federal government after Majority Leader John Thune signaled progress in bipartisan talks to resolve the impasse.
Nasdaq futures climbed 1.1% and S&P 500 futures gained 0.65%. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9%, while Japan’s Nikkei added 1%.
European markets looked set for a strong open, with EUROSTOXX 50 and DAX futures up nearly 1.4% each, and FTSE futures advancing 0.8%.
In China, the CSI 300 index slipped 0.14%, even as Hong Kong’s Hang Seng Index added 0.6%. Spot gold rose 1.2% to $4,047.23 an ounce.
Crude impact
Oil prices edged higher on Monday, supported by optimism that an end to the U.S. government shutdown could boost demand in the world’s largest oil consumer, even as worries over rising global supply lingered.
Brent crude futures gained 47 cents, or 0.74%, to $64.10 a barrel by 0123 GMT, while U.S. West Texas Intermediate climbed 50 cents, or 0.84%, to $60.25.
Rupee vs Dollar
The Indian rupee opened steady at 88.65 against the U.S. dollar on Monday, little changed from its previous close, as a softer greenback and expectations of central bank support helped stabilize sentiment.
Meanwhile, the dollar index slipped to 99.62 in early trade.
(with inputs from agencies)