Indian equity benchmarks started Friday’s trading session on a positive footing, extending recent gains as favourable cues from global markets spurred buying interest, particularly in technology, pharmaceutical, and automotive stocks during the initial hours.
Building on the momentum from previous sessions, both the Sensex and Nifty 50 opened higher.
Around 9:27 am, the 30-share BSE Sensex was trading at 80,066.81, up 265.3 points or 0.33 per cent from its previous close.
The broader NSE Nifty 50 index added 89.85 points or 0.37 per cent, trading comfortably above the 24,300 mark at 24,336.55.
This positive start indicated continued investor confidence following a strong run-up in recent days.
Global cues provide updraft
The domestic optimism was significantly bolstered by a strong performance in overseas markets overnight.US stock indices rallied sharply on Thursday, with investors actively buying into technology stocks that had recently faced pressure.
Analysts noted this buying helped lift the S&P 500 out of correction territory.
The Dow Jones Industrial Average closed 1.23% higher, the S&P 500 climbed 2.03%, and the tech-heavy Nasdaq Composite surged 2.74%.
This positive sentiment carried over into Asian trading on Friday morning, with markets in Jakarta, Bangkok, Seoul, Hong Kong, China, and Japan all registering gains.
Sectoral currents and broader market check
Early trading in India saw clear sectoral preferences emerge. IT, Pharma, and Auto stocks attracted buying interest, contributing to the headline indices’ gains.However, the Nifty Bank index experienced a slight pullback, trading down 0.40% or 222.85 points at 54,978.55.
The broader market displayed mixed signals in the initial phase; the Nifty Midcap 100 index edged slightly higher (+0.02% at 54,980.80), while the Nifty Smallcap 100 index saw a decline (-0.35% at 16,903.30).
Movers and shakers: tech leads gainers
Within the Sensex pack, technology and automotive names featured prominently among the early gainers.TCS (NSE:TCS), Tata Steel (NSE:TISC), Maruti Suzuki (NSE:MRTI), Eternal [as per source], ICICI Bank (NSE:ICBK), SBI (NSE:SBI), HDFC Bank (NSE:HDBK), Infosys (NSE:INFY), M&M, and Tata Motors (NSE:TAMO) were trading higher.
Conversely, Axis Bank (NSE:AXBK), Tech Mahindra (NSE:TEML), Nestle (NSE:NEST) India, and IndusInd Bank (NSE:INBK) were among the stocks experiencing early selling pressure.
Institutional flows signal confidence
Adding to the positive backdrop was the continued strong participation from foreign institutional investors (FIIs).Data from the previous session (April 24) showed FIIs were substantial net buyers, purchasing Indian equities worth Rs 8,250.53 crore.
Domestic institutional investors (DIIs), however, were net sellers on the same day, offloading equities worth Rs 534.54 crore.
The significant net inflow from FIIs indicated sustained foreign investor confidence in the Indian market outlook.