CHENNAI: Indian equity benchmarks traded higher through mid-morning on Monday, supported by positive global cues and upbeat domestic earnings. The Nifty 50 was up around 0.3 percent, while the Sensex gained a similar margin, extending early gains on broad-based buying across sectors.
Investor sentiment improved after reports suggested progress toward resolving the US government shutdown, lifting risk appetite across Asian markets. Back home, strong corporate earnings continued to provide support, particularly in select mid-cap and pharma counters.
Out of 16 major sectoral indices, 14 were in the green, with mid-cap and small-cap stocks rising about 0.5 percent. Among notable movers, Nykaa gained over 4 percent after posting robust second-quarter results, while Lupin advanced more than 2 percent following a 73 percent year-on-year jump in quarterly profit. In contrast, Ola Electric slipped nearly 2 percent after a credit-rating downgrade.
Market breadth remained positive, indicating sustained buying interest beyond frontline stocks. However, analysts noted that the gains were modest and pointed to a “wait-and-watch” approach among investors ahead of key global economic updates.
While optimism over US fiscal developments and resilient domestic earnings have boosted near-term sentiment, traders remain cautious about potential volatility linked to foreign institutional flows, inflation data, and policy signals from global central banks.
Market strategists say the near-term outlook remains cautiously constructive, with investors advised to focus on quality large-cap names while selectively adding exposure in sectors showing earnings momentum.
In summary, Indian equities were trading firm by mid-morning, reflecting steady optimism from global and domestic factors, though with a measured tone as investors look for fresh triggers to sustain the uptrend.