Markets Open Higher: Sensex Gains 200 Points, Nifty Inches Towards 24,000

Indian equity benchmarks opened in positive territory on Thursday, with the Sensex gaining over 200 points and the Nifty moving closer to the 24,000 level, supported by buying in banking stocks.

At around 9:23 am, the Sensex stood at 76,814.73, up 244.38 points or 0.32 per cent, while the Nifty rose 56.90 points or 0.24 per cent to 23,971.35.

Banking shares led early gains after banks raised a record $127 billion through the Reserve Bank of India’s concessional FCNR(B) swap facility. Total foreign currency mobilisation under the broader facility was around $136 billion.

Geojit Investments Chief Investment Strategist Dr V K Vijayakumar said easing US bond yields could improve market sentiment. He noted that the substantial foreign currency mobilisation could support the rupee and strengthen confidence among foreign institutional investors.

Vijayakumar said the $127 billion raised through the FCNR(B) facility exceeded market expectations and could help stabilise the rupee. A firmer currency, coupled with improving growth and earnings prospects, could encourage FIIs to maintain their buying in Indian equities.

He also highlighted the potential benefit for banks, saying the large FCNR(B) mobilisation could improve their net interest margins and provide further support to banking stocks.

The market’s opening gains came a day after the Nifty fell 141 points despite strong institutional buying. Institutional investors bought equities worth around Rs 9,500 crore on Wednesday, including Rs 6,688 crore from FIIs and Rs 2,812 crore from domestic institutional investors.

According to Vijayakumar, the sharp decline suggested that retail investors, proprietary traders and bears accounted for much of the selling pressure. He expects some of that pressure to ease in Thursday’s session.

Investors will closely monitor the rupee, US bond yields, foreign fund flows and global market cues for the next direction.