Indian equities opened on a positive note supported by foreign buying and optimistic corporate earnings outlook, but gains faded as investor caution increased amidst currency weakness and profit-taking in heavyweight stocks.
Indian shares started Monday on firmer footing, helped by sustained foreign portfolio investor buying and a more optimistic tone around corporate earnings, before the initial advance faded. According to market data reported by the Free Press Journal, the Sensex opened at 78,501 against a previous close of 78,499 and briefly rose as much as 0.22% to 78,676, while the Nifty 50 climbed to 24,620 before losing most of those gains by about 10:20 am.
Early strength was concentrated in pharma, information technology and private banks. Titan led the Sensex gainers, while ICICI Bank and Axis Bank also traded higher. The broader market was uneven, with mid-cap shares firmer but small-caps slipping. India VIX, a gauge of expected volatility, rose 5.34% to 12.81, suggesting traders were becoming a little more cautious even as the main indices opened in positive territory.
Foreign buying has been a key support for Indian equities in recent sessions. The Free Press Journal said overseas investors bought Indian shares worth $1.36 billion last week, after purchases of $2.12 billion in July. That fits a broader pattern noted by Livemint, which reported that the return of foreign institutional investors in 2026 helped revive the Nifty, supported by resilient growth, healthy corporate earnings and a manufacturing purchasing managers’ index above 57.
A separate February note from Brickwork Ratings said the market mood had already improved as a US-India trade deal was expected to ease foreign selling pressure and strengthen earnings visibility. Even so, Monday’s session showed that enthusiasm remains fragile. The rupee opened at 95.17 against the dollar, slightly weaker than the previous close, and several heavyweight stocks, including Reliance Industries, Larsen & Toubro and Bharti Airtel, traded lower as the morning progressed.
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