Mumbai, May 26: The domestic benchmark indices opened higher on Monday as India achieving a new high in the world’s largest economy ranking boosted investors’ sentiment.

At around 9.32 am, Sensex was trading 640.3 points or 0.78 per cent up at 82,361.46 while the Nifty added 187.39 point or 0.75 per cent at 25,040.45.

Nifty Bank was up 408.25 points or 0.74 per cent at 55,806.50 The Nifty Midcap 100 index was trading at 57,114.35 after rising 426.60 points or 0.75 per cent. Nifty Smallcap 100 index was at 17,789.25 after climbing 145.90 points or 0.83 per cent.

According to analysts, news of India becoming the fourth largest economy in the world would be a near-term morale boost for the market.

The RBI’s bumper dividend payment to the government exceeding the budget estimates will also help contain the fiscal deficit target for FY26 at 4.4 per cent.

"This, in turn, can sustain the low inflation and declining interest rate trend, which will continue to support the equity market. FII inflows which have been strong in early May have turned erratic recently indicating potential selling at higher levels," said VK Vijayakumar, Chief Investment Strategist of Geojit Investments Limited.

Meanwhile, in the Sensex pack, M&M, PowerGrid, NTPC, Tata Motors, ICICI Bank, SBI, Tech Mahindra, L&T, Asian Paints and Axis Bank were the top gainers. Whereas, only Eternal was the top loser.

In the Asian markets, Bangkok, Seoul and Japan were trading in green. China, Hong Kong and Jakarta were trading in red.

In the last trading session, Dow Jones in the US closed at 41,603.07, down 256.02 points, or 0.61 per cent. The S&P 500 ended with a loss of 39.19 points, or 0.67 per cent, at 5,802.82 and the Nasdaq closed at 18,737.21, down 188.53 points, or 1.00 per cent.

On the institutional front, foreign institutional investors (FIIs) were net buyers as they bought equities worth 1,794.59 crore on May 23, while domestic institutional investors (DIIs) purchased equities worth 299.78 crore.

India's GDP growth data, US Federal Reserve meeting minutes, and US inflation figures represent essential economic indicators scheduled for release this week that could significantly impact market sentiment, said experts.

"Geopolitical uncertainties, the ongoing earnings season, institutional capital flows, and derivatives expiry dates are serving as the primary drivers of volatility in Indian equity markets during this period," said Devarsh Vakil, Head of Prime Research of HDFC Securities.

(IANS)

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