MUMBAI, Aug 3 — Indian equity benchmark indices opened firmly higher on Monday, surging up to 1 per cent in early morning trade driven by broad-based buying in banking, FMCG, and metal shares. The positive sentiment was further bolstered by declining global crude oil prices, favorable monsoon progress, and a resurgence in foreign institutional investor (FII) inflows.
The 30-share BSE Sensex surged 800 points, or 1.02 per cent, reaching an intraday high of 78,895.10 in early deals. Simultaneously, the broader NSE Nifty 50 advanced 192.85 points, or 0.79 per cent, to touch 24,576.45.
Sectoral trends were largely positive:
-
Top Gainers: FMCG, metal, cement, PSU banking, and private banking indices saw gains of up to 1 per cent.
-
Under Pressure: Media, pharmaceutical, and healthcare stocks faced selling pressure, slipping up to 1.6 per cent.
-
Broader Markets: Broader indices also mirrored the optimistic tone, with the Nifty Microcap 500 and Nifty Smallcap 100 climbing around 1 per cent.
Market analysts attributed the bullish momentum to multiple tailwinds, including resilient domestic economic growth, credit growth exceeding 18 per cent, solid July auto sales, and encouraging Q1 earnings expectations. Furthermore, steady inflows via FCNR(B), ECB, and OFCB routes have helped stabilize the Indian rupee, encouraging the return of foreign capital.
In global energy markets, Brent crude—the international benchmark—tumbled over 5 per cent to $83.31 per barrel, while US West Texas Intermediate (WTI) fell nearly 7 per cent to $78.78 per barrel, providing a significant boost to import-dependent Indian markets.
From a technical standpoint, analysts note that the 24,400 strike on the Nifty provides strong immediate support backed by significant PUT open interest, while CALL writing near 24,600 may temporarily cap near-term upside.