New Delhi: India’s equity markets are expected to open on a positive note this Monday, supported by global cues and robust domestic corporate earnings. Investor optimism has been fueled by signs that the U.S. federal government may end its shutdown soon, alongside encouraging results from several Indian companies for the September quarter.
Futures for the Nifty 50 index were trading around 25,614.5 points ahead of the market open, up from Friday’s close of 25,492.3 points. The early optimism comes as investors anticipate a legislative breakthrough in Washington that would reopen the U.S. government, reducing global financial uncertainty and stabilizing trade sentiment.
Asian markets broadly followed a similar trend, with key indices posting gains of about 0.9% on Monday. Analysts note that a resolution to the U.S. shutdown could have a ripple effect on emerging markets, including India, by boosting risk appetite, stabilizing the dollar, and supporting cross-border investments.
On the domestic front, investors are balancing optimism with caution. After a strong rally of roughly 4.5% in October, the Nifty and the BSE Sensex trimmed about 0.9% last week amid profit-taking. Market participants are expected to consolidate recent gains while assessing earnings reports and macroeconomic indicators.
Institutional investors have provided a significant boost to market sentiment. On Friday, foreign portfolio investors (FPIs) turned net buyers, investing approximately ₹45.81 billion (~US$521.2 million), ending a six-session streak of net selling. Domestic institutional investors (DIIs) also contributed with net purchases of about ₹66.75 billion, reinforcing market stability.
Several companies have grabbed investor attention with strong quarterly results:
• Bajaj Auto posted improved Q2 profits, supported by higher exports despite softer domestic sales.
• Nykaa, the beauty and personal care retailer, reported more than a threefold jump in profit, driven by increased demand and global brand partnerships.
• Trent saw an 11% profit increase for the quarter, aided by new store openings and gains from its Zara venture.
• National Aluminium Company (NALCO) posted a 37% profit rise, benefiting from higher commodity prices.
• Lenskart Solutions is preparing for a highly anticipated IPO, which was oversubscribed over 28 times last week, signaling strong investor appetite.
Market analysts suggest that while immediate sentiment is positive, the broader trend may involve cautious consolidation rather than a sharp rally. The mix of global stimulus hopes, domestic earnings strength, and robust institutional flows supports market momentum, but investors are advised to remain vigilant amid valuation pressures and potential geopolitical or macroeconomic shocks.
For stakeholders, selective stock buying in earnings-driven and export-oriented sectors remains a strategic approach, while close monitoring of global developments and corporate guidance will be key in sustaining gains.