Indian equity benchmarks staged a sharp recovery on Monday, snapping a three-session losing streak, as foreign brokerages upgraded their outlook and institutional buying resumed.
The BSE Sensex climbed 250 points to trade at 83,500 in early deals, while the NSE Nifty advanced 80 points to 25,560. The rebound came after the indices had closed lower for three straight days, with the Sensex ending Friday at 83,216 and the Nifty at 25,492.
Global heavyweights HSBC and Goldman Sachs shifted to an overweight stance on Indian markets, citing improving macroeconomic cues and attractive valuations after recent corrections. The upgrades triggered fresh foreign institutional investor (FII) interest, with FPIs netting purchases worth ₹5,147.92 crore on November 7, data from the National Securities Depository showed.
Domestic institutions added muscle, buying ₹6,135.12 crore worth of shares on the same day. The combined inflows marked a reversal from September's heavy FII selling of ₹35,301.36 crore, offset then by DII purchases of ₹65,343.59 crore. October had already seen a modest FPI return of ₹14,610 crore.
IT stocks led the charge on the Sensex. Infosys, HCL Technologies, and TCS rose between 1% and 2%, lifting the Nifty IT index over 1%. Other notable gainers included Hindustan Unilever, UltraTech Cement, Adani Ports, Kotak Mahindra Bank, Titan, HDFC Bank, and Axis Bank.
Sectoral indices painted a broadly positive picture, with all major groups except media, PSU banks, and realty trading in the green.
The turnaround reflected broader sentiment shifts. "Valuations have corrected to reasonable levels, and earnings growth remains intact," a Goldman Sachs note circulated to clients stated. HSBC echoed the view, highlighting India's resilient consumption story amid global uncertainties.
Global markets offered mixed signals. Japan's Nikkei jumped 0.98% to 50,766.89, South Korea's KOSPI soared 2.89% to 4,067.88, and Hong Kong's Hang Seng edged up 0.58% to 26,394.29. China's Shanghai Composite dipped marginally by 0.037% to 3,996.07.
On Wall Street, the Dow Jones closed November 7 up 0.16% at 46,987.10, the Nasdaq gained 0.21%, while the S&P 500 slipped 0.13%.
Analysts cautioned that sustained FII flows would depend on upcoming domestic earnings and global rate trajectories. "The upgrade cycle is positive, but volatility could persist until clarity emerges on U.S. policy under the new administration," said V.K. Vijayakumar, chief investment strategist at Geojit Financial Services.
Trading volumes picked up in morning sessions, with over 1,200 stocks advancing on the BSE against 800 decliners. Market breadth favored bulls, signaling potential for further gains if inflows hold.
The recovery underscores India's appeal as a growth outpost even as emerging markets face headwinds. With Diwali euphoria fading, investors now eye corporate results and inflation data due later this week for the next cues.
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