Financials, IT Stocks Propel Indian Markets Higher
Indian equity markets surged on Monday, driven by strong buying in financial and information technology stocks, as foreign investors returned to domestic shares following a rebound in the rupee. The Nifty 50 rose 0.61% to 26,128.4, while the BSE Sensex gained 0.56% to 85,408.76. All 16 major sectors traded higher, with mid-cap and small-cap indices also posting gains of 0.5% and 0.4%, respectively.
The market had faced a three-week decline due to concerns over foreign fund outflows, rupee depreciation, and delays in a potential India-U.S. trade deal. However, foreign portfolio investors purchased Indian shares worth 18.31 billion rupees ($204.42 million) on Friday, boosting net inflows to 37.76 billion rupees over the past three sessions. Analysts say this reversal, coupled with rupee stability, could trigger short covering and support a year-end rally.
Among individual stocks, Infosys rose 2.3% following a strong performance in its American-listed shares, while GE Vernova T&D India jumped 8% after securing a multi-year HVDC voltage source converter contract from AESL Projects. Market watchers note that the Reserve Bank of India’s policy minutes suggest that subdued inflation and potential moderation in economic growth next year could create room for additional interest rate cuts, further supporting investor sentiment.
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