Nifty surges by 120 pts, Sensex gains 400 pts amid inflows from foreign, domestic investors

MUMBAI: Indian equity markets started the Tuesday session on a positive note, supported by strong inflows from foreign portfolio investors (FPIs) and domestic institutional investors (DIIs). The Nifty 50 index opened at 24,370.70, up by 42.20 points or 0.17 per cent, while the BSE Sensex surged by 178 points to open at 80,396.92, registering a gain of 0.22 per cent. Both indices continue the upward movement.

Market experts highlighted that the gains are primarily driven by positive flows from both domestic and international fronts. However, they cautioned that uncertainty continues to linger due to the geopolitical risk of a potential kinetic action against Pakistan.

Ajay Bagga, banking and market expert, said, “Indian markets are benefitting from combined inflows from returning FPIs and continued DII inflows. The geopolitical overhang is being addressed for now with inflows leading to good performance in the markets, but we are approaching key levels on both the Nifty and the broader indices. Taking a 6-month view, markets remain 7 per cent plus under the September 2025 highs, so despite the three recovery phases we have seen, we have not been able to approach those levels yet”.

Meanwhile, high-net-worth individual (HNI) desks are reportedly raising cash at every market move, and mutual funds are also maintaining higher-than-usual cash levels in their equity portfolios.

On the liquidity front, the Reserve Bank of India (RBI) has been proactively conducting Open Market Operations (OMOs) to inject systemic liquidity. This move is keeping the markets well-funded even after FPIs withdrew over $2.5 billion from the Indian bond markets in the past month.

Experts said that May liquidity could slip into deficit again, making the RBI’s front-loading of OMOs a timely and welcome step. It is expected to benefit both money markets and bond yields. However, bond yields have edged up slightly from their early April lows, a development seen as a slightly negative signal for equities.

Akshay Chinchalkar, Head of Research, Axis Securities, said, “The Nifty recovered from Friday’s drop yesterday but was still not able to get past the 24360 area, which has now served as the high for the last 4 sessions. The short-term price structure remains bullish as long as we don’t close below 23872 but resistance is material between 24,360 and 24,500.”

Across sectoral indices on NSE, all sectors opened in the green on Tuesday. Nifty PSU Bank led the gains, followed by Nifty Auto, which surged 0.52 per cent. Nifty Media rose by 0.7 per cent, Nifty IT gained 0.43 per cent, and Nifty Pharma was also in the green, up by 0.24 per cent at the time of filing the report.

In other Asian markets, a modest movement with gains was seen. Hong Kong’s Hang Seng Index was trading with gains of 0.4 per cent, Taiwan’s Weighted Index rose by 0.5 per cent, and South Korea’s KOSPI Index surged 0.6 per cent. All major markets in Asia opened with gains, while Japanese markets remained closed for a holiday. (ANI)