Indian benchmark indices Nifty and Sensex opened higher on Monday, fueled by gains in Kotak Mahindra Bank and Wipro, which lifted sentiment in the banking and IT sectors. However, weakness in the auto and metal sectors limited the rally. The India VIX, a gauge of market anxiety, surged by nearly 8 per cent, reaching the 17 level.
Global markets were buoyed by optimism following positive talks between Donald Trump and Chinese President Xi Jinping ahead of Trump’s inauguration. US markets ended the week on a high note, fueled by confidence in economic health and interest rate trends, as investors prepared for policy changes under the new administration.
At around 10.00 am, The Sensex rose by 151 points, or 0.20 per cent, to reach 76,770.33, while the Nifty gained 20.10 points, or 0.09 per cent, settling at 23,223.30. Of the shares traded, 1,881 advanced, 1,339 declined, and 172 remained unchanged.
Kotak Mahindra Bank, NTPC, SBI, Reliance, and Power Grid were the major gainers on the index. Indusland, Tata Motors, Axis Bank, TCS and Infosys were the major losers on the index.
Broader Market
The broader market, including mid- and small-cap indices, traded lower, with both indices remaining well below their September highs. The Midcap index was down by 12 per cent, and the Smallcap index dropped 11 per cent. Many individual stocks have experienced sharper corrections, falling by 25-40 per cent, due to stretched valuations, slowing economic momentum, and disappointing Q2 earnings.
Sectorial Update
The Nifty Bank and IT indices saw the most gains, driven by rises in Kotak Mahindra Bank and Wipro, respectively. Nifty PSU Bank and Realty stocks opened in the green, each gaining 0.4 per cent, while Oil and Gas and consumer durable stocks also saw positive openings. On the downside, Nifty Auto and Pharma stocks were marginally red.
Rupee Movement
The Indian rupee gained 15 paise at the open on Monday, supported by a decline in the dollar index and gains in Asian currencies, according to experts. The rupee opened at 86.4613 against the dollar, compared to the previous session's close of 86.6125.