Indian stocks opened higher on Monday morning, buoyed by a robust performance in US markets on Friday. Improved investor sentiment, coupled with relative easing tensions in the Middle East and declining oil prices, provided further support to Indian stocks. At 9:47 am, the Sensex stood at 74,026.23 points, up 411 points or 0.40 per cent, while the Nifty reached 22,473.65 points, up 53.70 points or 0.24 per cent. Notably, sectors like Nifty Bank, Nifty Financial Services, and Nifty Media were among the top movers in early trade.
Focus shifts to corporate earnings and FOMC meeting
The upcoming week is expected to be dominated by corporate earnings releases and the highly anticipated Federal Open Market Committee (FOMC) meeting scheduled for April 30 to May 1. Analysts foresee a positive outlook in Asian markets as April concludes, despite potential challenges in May.
Expert insights on market trends
Market and banking expert Ajay Bagga expressed optimism, stating, “We expect positive markets this week, driven by continued corporate earnings catalysts. In India, we expect sideways to slightly positive markets this week.” Bagga attributed last week’s market boost to strong earnings and guidance from US Big Tech companies.
Volatility returns amid foreign portfolio investor activity
Despite a smooth rally at the beginning of April, volatility has returned to Indian stock markets, largely due to Foreign Portfolio Investor (FII) selling activity. Foreign portfolio investors (FPIs) have recently turned net sellers in Indian stocks, potentially influenced by the ongoing geopolitical crisis in the Middle East.
FPIs become net sellers after months of net buying
According to data from the National Securities Depository Limited (NSDL), FPIs, who were net buyers for the past three months until April, have collectively sold stocks worth Rs 6,304 crore. This shift in FPI activity suggested a cautious approach among investors amidst global uncertainties.
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