Global Cues Boost Indian Equities as IT Sector Leads

Indian equities started the week on a positive trajectory, driven by favorable global developments and robust buying in IT majors. The Sensex climbed to 81,635.91 points, marking a rise of 329.05 points or 0.40%, while the Nifty ended at 24,967.75 points, a gain of 97.65 points or 0.39%. Despite the upbeat movement, analysts observed that profit-taking at higher levels somewhat limited the indices' growth.

Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, remarked, "Markets initiated the week with gains of nearly half a percent, owed to positive global cues. While the Nifty initially dipped in early trade, it rebounded thanks to robust activity in IT majors and sturdy performance in heavyweight sectors." The broader markets, however, displayed a more cautious stance, closing relatively flat amid moderated investor sentiment.

Investor confidence was further bolstered by suggestions from the U.S. Federal Reserve of a potential rate cut next month, which enhanced risk appetite in emerging markets. Additionally, steady institutional investments and easing crude oil prices lent further support to the market.

Vinod Nair, Head of Research at Geojit Financial Services, highlighted the domestic advantages, citing proposed GST rationalisation and a promising monsoon season as potential drivers for greater consumption amid global trade uncertainties. Nevertheless, the Indian equity landscape remains volatile, significantly influenced by wavering trade relations with the United States, which has implemented a 50% tariff on Indian goods.

The Sensex stands some 4,500 points below its peak of 85,978. In 2025, it posted a 4% increase, following a combined growth of 9-10% in 2024 for both Sensex and Nifty. A notable cumulative gain of 16-17% was reported in 2023, contrasting a modest 3% rise in 2022. (ANI)

(With inputs from agencies.)