The Indian stock market opened on a strong note Monday, buoyed by positive investor sentiment following India’s ascent to the fourth spot in the global economy rankings.
By 9:32 a.m., the BSE Sensex had rallied 640.3 points, or 0.78%, to trade at 82,361.46. Meanwhile, the NSE Nifty was up 187.39 points, or 0.75%, at 25,040.45.
The broader market also saw an upward trend. The Nifty Bank index gained 408.25 points, or 0.74%, reaching 55,806.50. The Nifty Midcap 100 rose 426.60 points to 57,114.35, while the Nifty Smallcap 100 advanced 145.90 points to 17,789.25, registering a 0.83% gain.
Analysts attributed the early rally to the news of India becoming the world’s fourth-largest economy, calling it a morale booster for markets in the short term. Additionally, the Reserve Bank of India’s record dividend payout to the central government—exceeding budget estimates—is expected to aid in containing the fiscal deficit at 4.4% for FY26.
“This, in turn, can help sustain the current low inflation trend and a declining interest rate environment, both of which are supportive of equity markets. While foreign institutional investors (FIIs) were strong buyers earlier in May, the trend has turned erratic recently, suggesting profit booking at higher levels,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
In the Sensex basket, top gainers included M&M, PowerGrid, NTPC, Tata Motors, ICICI Bank, SBI, Tech Mahindra, L&T, Asian Paints, and Axis Bank. Eternal was the only notable loser in early trade.
In Asia, markets traded mixed. Indices in Bangkok, Seoul, and Tokyo were in the green, while markets in China, Hong Kong, and Jakarta saw declines.
Globally, the last trading session in the U.S. ended lower. The Dow Jones Industrial Average closed at 41,603.07, down 256.02 points or 0.61%. The S&P 500 dropped 39.19 points (0.67%) to 5,802.82, and the Nasdaq declined 188.53 points (1.00%) to settle at 18,737.21.
On the institutional investment front, FIIs were net buyers, purchasing equities worth ₹1,794.59 crore on May 23. Domestic institutional investors (DIIs) also bought stocks worth ₹299.78 crore.
Looking ahead, key economic data such as India’s GDP figures, the U.S. Federal Reserve’s meeting minutes, and U.S. inflation numbers are expected to influence market sentiment this week.
“Geopolitical uncertainties, the ongoing corporate earnings season, institutional capital flows, and the upcoming derivatives expiry are currently driving volatility in Indian equity markets,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.
