CHENNAI: Indian equity benchmarks opened on a positive note on Monday after a volatile week, tracking firm cues from global peers. The BSE Sensex rose around 0.4% in early trade, while the NSE Nifty 50 gained about 0.43%. Gains were led by energy and oil & gas stocks, while FMCG names, including Hindustan Unilever, were under pressure.
Investor sentiment in India remains cautious following last week’s sharp declines triggered by concerns over US policy moves, including higher visa fees for skilled workers and possible tariffs on pharmaceuticals. These measures weighed heavily on IT and pharma counters, though analysts suggest that earnings risk for large companies may be contained.
Foreign institutional flows continue to be a concern, with persistent outflows from both equities and bonds. Regulators are reportedly exploring faster approval processes to ease entry for overseas investors. On the positive side, some strategists believe corporate earnings in India may be bottoming out, with HSBC recently upgrading the country to an “overweight” rating in its Asian portfolio.
In the broader Asian region, markets were mostly in the green, buoyed by overnight gains on Wall Street and easing US inflation expectations. Hong Kong’s Hang Seng index climbed more than 350 points, while China’s Shenzhen Composite advanced about 1.3 percent. Technology stocks led the rally, supported by strong global momentum in semiconductors and artificial intelligence.
Japan and South Korea also traded higher, though gains were more muted amid lingering domestic headwinds. Southeast Asian markets followed the positive global trend, with commodity-linked stocks benefiting from firm energy and metal prices.
The overall tone across Asia was risk-on in morning trade, but investors remain watchful of upcoming US economic data, global interest rate signals, and trade developments between Washington and Beijing.
In India, near-term support for the Nifty is seen around the 24,900 level, while volatility may persist as markets weigh global and domestic cues. Energy and cyclical sectors are expected to provide some cushion, even as IT and FMCG stocks face pressure.