Indian benchmark equity indices opened on a positive note on Thursday, July 16, with the BSE Sensex gaining more than 200 points and the NSE Nifty advancing over 50 points, supported by buying in auto and information technology (IT) stocks. The upbeat opening reflected improved investor sentiment amid mixed cues from Asian markets and a positive overnight close on Wall Street.

In early trade, the Sensex was trading around 77,350, up nearly 200 points from its previous close, while the Nifty 50 climbed above the 24,150 mark, extending gains for a second consecutive session.

Market participants largely favoured auto and IT counters during the opening session, helping benchmark indices maintain their upward momentum. The broader market also witnessed selective buying, although investors continued to monitor global developments and institutional fund flows for further direction.

Auto, IT Stocks Drive Early Rally

The day's gains were primarily led by the automobile and information technology sectors, which attracted fresh buying interest in early trading. Analysts said investors continued to focus on sectors expected to benefit from improving earnings expectations and stable domestic economic indicators.

The positive momentum comes after benchmark indices ended the previous session in the green, providing confidence to investors despite ongoing volatility in global markets.

Asian Markets Present Mixed Picture

Asian equity markets traded with mixed trends on Thursday, reflecting varied investor sentiment across the region.

Hong Kong's Hang Seng Index was among the strongest performers, rising around 1.84%, supported by buying in technology and financial shares.

However, weakness persisted in some other regional markets. Japan's Nikkei traded lower by nearly 2.84%, while South Korea's market also remained under pressure during the session.

The divergent performance across Asia suggests that investors remain cautious amid evolving global economic conditions, interest rate expectations and geopolitical developments.

Wall Street Ends Higher

Investor sentiment also drew support from the previous overnight session in the United States, where major benchmark indices finished with gains.

The Dow Jones Industrial Average rose by around 150 points, while the Nasdaq Composite gained approximately 162 points. The S&P 500 also closed higher, reflecting renewed buying interest in technology and large-cap stocks.

The positive performance on Wall Street provided supportive global cues for Indian equities at the opening bell.

Domestic Investors Continue Buying

Domestic institutional investors (DIIs) remained net buyers in the Indian equity market, continuing to provide stability despite intermittent foreign fund outflows.

According to the latest market data, DIIs purchased equities worth ₹2,928 crore during the latest session. Their cumulative net buying has reached ₹9,177 crore over the past seven trading sessions and ₹41,028 crore during the last 30 days.

In contrast, Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) remained net sellers, offloading equities worth ₹740 crore in the latest session. Over the past week, their cumulative net selling stood at ₹1,731 crore, while net outflows over the previous month totalled ₹2,027 crore.

Market experts note that sustained domestic institutional participation has continued to cushion Indian equities against periods of foreign selling.

Markets Extend Previous Session's Gains

Thursday's positive opening follows a firm close in the previous trading session. On Wednesday, the Sensex settled 130 points higher at 77,185, while the Nifty gained 26 points to close at 24,079, supported by selective buying in heavyweight stocks.

Investors are now expected to track quarterly corporate earnings, global market developments, foreign investment trends and macroeconomic indicators for fresh cues that could determine the market's near-term direction.