Indian Stock Market Opens Higher; Sensex Jumps 640 Points

Mumbai – Indian stock markets opened on a strong note Monday, buoyed by investor optimism following news that India has climbed to the fourth position in the global economic rankings.

As of 9:32 a.m., the BSE Sensex surged 640.3 points, or 0.78%, to 82,361.46, while the NSE Nifty rose 187.39 points, or 0.75%, to 25,040.45.

The Nifty Bank index gained 408.25 points, or 0.74%, reaching 55,806.50. The Nifty Midcap 100 was up 426.60 points (0.75%) at 57,114.35, while the Nifty Smallcap 100 climbed 145.90 points (0.83%) to 17,789.25.

Analysts noted that India's rise to the fourth-largest economy globally has provided a short-term boost to market sentiment. Additionally, the Reserve Bank of India's higher-than-expected dividend payout to the government is expected to support efforts to meet the fiscal deficit target of 4.4% for FY26.

“This development can help maintain low inflation and a downward trend in interest rates, both of which are favorable for the equity markets. However, while FIIs were strong buyers in early May, their flows have recently become erratic, indicating possible selling at higher levels,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Among the top gainers in the Sensex were M&M, PowerGrid, NTPC, Tata Motors, ICICI Bank, SBI, Tech Mahindra, L&T, Asian Paints, and Axis Bank. The only notable loser was Eternal.

In Asia, markets in Bangkok, Seoul, and Japan were trading in the green, while China, Hong Kong, and Jakarta were in the red.

In the previous U.S. trading session, the Dow Jones fell 256.02 points (0.61%) to close at 41,603.07. The S&P 500 lost 39.19 points (0.67%) to finish at 5,802.82, and the Nasdaq dropped 188.53 points (1.00%) to 18,737.21.

On the institutional front, foreign institutional investors (FIIs) were net buyers on May 23, purchasing ?1,794.59 crore worth of equities, while domestic institutional investors (DIIs) bought ?299.78 crore.

Experts pointed out that key events this week—including India’s GDP growth data, the U.S. Federal Reserve meeting minutes, and U.S. inflation figures—could have a significant impact on market direction.

"Geopolitical tensions, ongoing corporate earnings, institutional fund flows, and the upcoming derivatives expiry are the main drivers of market volatility at present," said Devarsh Vakil, Head of Prime Research at HDFC Securities.

With inputs from IANS