Mumbai: Due to favourable international indicators and investor hope that foreign direct investment (FDI) would return to India as a result of the decline in artificial intelligence (AI) equities, Indian benchmark indexes began the week in the green zone on Monday.
The Sensex was up 115 points, or 0.14 percent, at 83,331 as of 9.25 am, while the Nifty was up 35 points, or 0.14 percent, to 25,521.
With advances of 0.37 percent for the Nifty Midcap 100 and 0.27 percent for the Nifty Smallcap 100, the broadcap indices beat benchmarks.
In the Nifty Pack, Asian Paints, L&T, and Hindalco were among the biggest winners, while Trent, Apollo Hospitals, Max Healthcare, Maruti Suzuki, and Dr Reddy’s Labs were among the losses.
Among the largest sectoral gains were Nifty IT, Metal, and Pharma, which increased by 0.56 to 0.79 percent. Except for Nifty Media, every sectoral index was trading higher.
According to analysts, FIIs—especially hedge funds—that have been regularly selling in India and withdrawing funds for engaging in the AI trade are now probably going to stop and gradually switch back to non-AI commerce in nations like India.
“The strong earnings growth in the US has been a fundamental support that pushed up AI stock valuations to elevated valuations. Countries regarded as AI winners such China, South Korea and Taiwan, also have benefited from this AI rally,” observed market watchers.
The 3% drop in the Nasdaq last week, according to analysts, is proof that the AI trade is waning. They noted that the US market will become strong if this positive trend continues without significant turbulence, preventing the construction of a bubble and its eventual burst.
Additionally, Wall Street stocks rose as news indicated that the US federal government’s longest closure would come to an end.
The Nasdaq fell 0.22 percent, the S&P 500 gained 0.13 percent, and the Dow slightly increased 0.16 percent as the US markets concluded the most recent trading day in the green zone.
During the morning session, the majority of Asian markets saw positive activity. Japan’s Nikkei index increased by 1.04 percent, Hong Kong’s Hang Seng Index up by 0.57 percent, and China’s Shanghai index decreased by 0.03 percent and Shenzhen by 0.59 percent. The Kospi in South Korea increased by 3.04%.
Domestic institutional investors (DIIs) were net buyers of stocks worth Rs 1,787 crore on Friday, while foreign institutional investors (FIIs) sold stocks worth Rs 4,889 crore.
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Photo: Nitin Lawate/IANS
–IANS
