Did Sensex and Nifty Open in Green Amid Positive Global Signals?
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Synopsis
In a promising start to the week, Indian benchmark indices opened in the green, fueled by positive global cues and growing optimism among investors regarding the return of FIIs to India. This shift comes as the AI stock market shows signs of decline, prompting a reevaluation of investment strategies.
Key Takeaways
- Sensex and Nifty opened in green due to positive global cues.
- FIIs may return to Indian markets amid AI stock declines.
- Nifty Midcap 100 and Smallcap 100 outperformed benchmarks.
- Sectoral gains led by Nifty IT, Metal, and Pharma.
- Analysts observe signs of declining AI trade activity.
Mumbai, Nov 10 (NationPress) The Indian benchmark indices commenced the week on a positive note this Monday, buoyed by favorable global signals and renewed investor enthusiasm regarding the return of foreign institutional investors (FIIs) to India, attributed to the downturn in artificial intelligence (AI) stocks.
As of 9:25 AM, the Sensex rose by 115 points, translating to a 0.14% increase, reaching 83,331, while the Nifty gained 35 points, also a 0.14% rise, standing at 25,521.
The broader indices outperformed the benchmarks, with the Nifty Midcap 100 seeing a 0.37% rise and the Nifty Smallcap 100 increasing by 0.27%.
Key performers within the Nifty Pack included Asian Paints, L&T, and Hindalco, while Trent, Apollo Hospitals, Max Healthcare, Maruti Suzuki, and Dr Reddy's Labs faced declines.
Sectoral gains were led by Nifty IT, Metal, and Pharma, which increased by 0.56% to 0.79%. All sectoral indices traded positively, with the exception of Nifty Media.
Market analysts noted that FIIs, especially hedge funds, who had been persistently withdrawing from Indian markets to invest in AI, may now be considering a shift back towards non-AI investments in markets like India.
According to market observers, "The robust earnings growth in the US has fundamentally supported inflated valuations of AI stocks. Countries perceived as AI frontrunners, such as China, South Korea, and Taiwan, have also gained from this AI surge."
They further highlighted signs indicating a potential slowdown in the AI trade, as evidenced by a 3% drop in the Nasdaq last week. A continuation of this trend, without excessive volatility, could bolster the US market and avert bubble formation, they added.
Additionally, Wall Street stocks experienced gains following reports that the prolonged shutdown of the US Federal Government might soon conclude.
In the previous trading session, US markets finished positively, with the Nasdaq falling by 0.22%, the S&P 500 climbing by 0.13%, and the Dow edging up by 0.16%.
During the morning session, most Asian markets traded positively. While China's Shanghai index dipped by 0.03% and Shenzhen fell by 0.59%, Japan's Nikkei gained 1.04%, and Hong Kong's Hang Seng Index increased by 0.57%. South Korea's Kospi surged by 3.04%.
On Friday, foreign institutional investors sold equities worth ₹4,889 crore, while domestic institutional investors were net buyers, acquiring equities worth ₹1,787 crore.
Point of View
We remain committed to delivering unbiased news and insights that matter. As the market evolves, we recognize the importance of foreign investments and their impact on the Indian economy. Our perspective is always aligned with the nation's growth and stability.
NationPress
10/11/2025
Frequently Asked Questions
What factors are influencing the rise of the Sensex and Nifty?
The recent rise in the Sensex and Nifty is primarily driven by positive global cues and investor optimism regarding the return of FIIs to India due to a decline in AI stocks.
Which sectors are performing well in the current market?
The Nifty IT, Metal, and Pharma sectors are among the top performers, demonstrating gains between 0.56% to 0.79%.
How have foreign institutional investors (FIIs) reacted in recent days?
FIIs have been selling equities but are showing signs of potentially reversing this trend as they reconsider investments in India.
What impact does the US market have on Indian indices?
The US market's performance, particularly strong earnings growth, often influences global investor sentiment and can lead to positive trends in Indian indices.
Are there any signs of volatility in the market?
Recent trends indicate a potential slowdown in the AI trade, which, if it persists, could lead to a more stable market environment without excessive volatility.
