Indian Markets Surge Amid Strong FPI and DII Inflows

Indian equity markets opened positively on Tuesday, buoyed by robust inflows from foreign portfolio investors and domestic institutional investors. Despite geopolitical concerns, the markets are well-supported by the RBI's proactive liquidity measures. All sectoral indices opened in the green, with gains seen in key Asian markets as well.

Indian equity markets kicked off the Tuesday session on a high note, bolstered by significant inflows from both foreign portfolio investors (FPIs) and domestic institutional investors (DIIs). The Nifty 50 index commenced trading at 24,370.70, marking an increase of 42.20 points or 0.17 percent, while the BSE Sensex jumped by 178 points to start at 80,396.92, reflecting a gain of 0.22 percent. Both indices continued their upward trajectory, driven by dual domestic and international inflows.

Market analysts acknowledged the robust gains, attributing them to the positive inflows from various quarters. However, they cautioned that geopolitical uncertainties, particularly the potential for kinetic action against Pakistan, still loom over the market. Ajay Bagga, a Banking and Market Expert, told ANI that despite geopolitical challenges, inflows have significantly contributed to market performance. He noted that while markets have seen recovery phases, they are still about 7 percent below the highs of September 2025.

High-net-worth individual desks and mutual funds are reportedly accumulating cash reserves amid market movements. The Reserve Bank of India has been active in injecting liquidity through Open Market Operations, ensuring markets remain well-funded despite FPIs withdrawing over USD 2.5 billion from Indian bond markets last month. This strategic move is anticipated to support money markets and stabilize bond yields, despite a slight rise in bond yields since early April.

Sectoral indices on the NSE opened positively, with Nifty PSU Bank leading gains, followed by Nifty Auto and Nifty Media. In other Asian markets, moderate gains were reported, with Hong Kong's Hang Seng Index, Taiwan's Weighted Index, and South Korea's KOSPI Index all reflecting positive movement. Japanese markets were closed for a holiday.

(With inputs from agencies.)