Markets Open Higher on Global Cues, FII Buying

In contrast, IT stocks faced heavy selling pressure, with Nifty IT plunging 3 per cent. Nifty MidSmall IT & Telecom declined 1.41 per cent, while FMCG slipped 0.17 per cent.

Analysts observed that heightened volatility has become a defining feature of global equity markets, particularly in the United States and South Korea, where technology stocks have experienced sharp swings in response to quarterly earnings, shifting expectations and speculative trading.

“In South Korea, particularly, volatility is excessive. Two stocks in Kospi — Samsung and SK Hynix — which account for 52 per cent of Kospi’s market capitalisation have been moving up and down sharply. In early trade this morning, Kospi is up by 16 per cent, driven by a 25 per cent spike in Samsung and a 21 per cent surge in SK Hynix,” they noted.

Such double-digit moves at the index level are rare and could prompt institutional investors to remain cautious. “India is a stable market and the downside risks are limited now, particularly in largecaps where valuations are fair and growth prospects are good,” the analysts added.

Foreign institutional investors have turned net buyers in recent sessions, purchasing equities worth a cumulative Rs 7,360 crore over the last three trading days.

On the commodities front, the international oil benchmark Brent crude declined nearly 2 per cent to $85.27 per barrel, while US West Texas Intermediate crude fell more than 2 per cent to $81.60 per barrel.

In Asia, markets traded mostly higher, with Japan’s Nikkei surging nearly 4 per cent and South Korea’s Kospi jumping over 14 per cent. Hong Kong’s Hang Seng was marginally lower. Wall Street had closed higher in the previous session, with the S&P 500 gaining 1.66 per cent and the Nasdaq advancing 2.79 per cent.

The early gains in Indian equities reflected selective buying in domestic-facing sectors alongside a supportive global backdrop, even as technology stocks remained under pressure.