Sensex, Nifty open higher on FII inflows, global rally; IT stocks drag
Synopsis
Indian markets opened in the green on 31 July, backed by ₹7,360 crore in FII buying over three days and a global rally — but the story of the session is a 3% crash in Nifty IT, even as South Korea's Kospi posted a rare 14% single-day surge on Samsung and SK Hynix. The divergence between India's stable large-cap appeal and the wild swings in global tech is the defining tension of this open.
Key Takeaways
Sensex opened at 77,998.66 , up 70.51 points ( 0.09% ), on 31 July .
Nifty50 rose 44.30 points ( 0.18% ) to 24,361.45 at open.
Nifty IT plunged 3% ; Nifty MidSmall IT and Telecom fell 1.41% .
FIIs bought equities worth ₹7,360 crore cumulatively over the last three trading days .
South Korea's Kospi surged over 14% , driven by a 25% spike in Samsung and 21% in SK Hynix .
Brent crude eased nearly 2% to $85.27/barrel , softening India's import cost outlook.
Sensex opened at 77,998.66, up 70.51 points or 0.09%, while the Nifty50 gained 44.30 points or 0.18% to trade at 24,361.45 on Friday, 31 July, as positive global cues and sustained foreign buying lifted Indian equity benchmarks in early trade. Financials, pharma, and auto stocks led the advance, even as a sharp sell-off in IT shares capped broader gains.
Sectoral Movers: Financials Lead, IT Bleeds
Nifty Financial Services Ex-Bank emerged as the top sectoral gainer, rising nearly 1%. Nifty Pharma, Nifty Auto, Nifty Healthcare, Nifty Metal, and Nifty PSU Bank each gained up to approximately 0.8%.
On the downside, Nifty IT plunged 3% — the session's sharpest sectoral fall — while Nifty MidSmall IT and Telecom declined 1.41% and FMCG slipped 0.17%. The IT rout mirrors a broader global technology reckoning tied to quarterly earnings pressure and speculative unwinding.
FII Buying Provides Cushion
Foreign institutional investors (FIIs) have turned net buyers in recent sessions, purchasing equities worth a cumulative ₹7,360 crore over the last three trading days. This sustained inflow has helped stabilise large-cap valuations and offset selling pressure in rate-sensitive sectors.
Analysts noted that India's large-cap segment remains relatively insulated, with valuations considered fair and growth prospects intact. 'India is a stable market and the downside risks are limited now, particularly in largecaps where valuations are fair and growth prospects are good,' analysts said.
Global Cues: Korea Surges, Wall Street Rebounds
Asian markets traded mostly higher, with Japan's Nikkei surging nearly 4% and South Korea's Kospi jumping over 14% — an unusually sharp single-session move. Hong Kong's Hang Seng, however, was marginally lower.
The Kospi's surge was driven by a 25% spike in Samsung and a 21% surge in SK Hynix — two stocks that together account for 52% of the index's market capitalisation. Analysts flagged that such double-digit index moves are rare and could make institutional investors cautious going forward.
On Wall Street, the S&P 500 gained 1.66% and the Nasdaq advanced 2.79%, providing a constructive overnight backdrop for Asian and Indian markets.
Oil Prices Ease, Adding to Macro Comfort
The international oil benchmark Brent crude declined nearly 2% to $85.27 per barrel, while US West Texas Intermediate (WTI) crude fell more than 2% to $81.60 per barrel. Softer crude prices ease India's import bill and reduce inflationary pressure — a net positive for domestic consumption and monetary policy headroom.
With FII flows holding firm and crude retreating, the near-term macro backdrop for Indian equities looks supportive, though the depth of the IT sector correction warrants close monitoring in sessions ahead.
Point of View
FIIs buying, crude softening — but the 3% crash in Nifty IT tells a more complicated story. Indian IT is effectively a proxy for US discretionary tech spending, and every global earnings wobble lands on Infosys and TCS first. Meanwhile, the Kospi's 14% single-session surge on two stocks is a red flag for institutional risk appetite: when index-level moves of that magnitude happen, global funds tend to rebalance defensively, and India's mid-cap momentum trade is not immune. The FII buying cushion is real, but it is concentrated in large-caps — if the IT rout deepens, the broader market's composure will be tested.
NationPress
31 Jul 2026
Frequently Asked Questions
How did Sensex and Nifty open on 31 July 2025?
Sensex opened at 77,998.66, up 70.51 points or 0.09%, while Nifty50 rose 44.30 points or 0.18% to 24,361.45 on 31 July. Gains were supported by financials, pharma, and auto stocks alongside positive global cues.
Why did Nifty IT fall sharply today?
Nifty IT plunged 3% in early trade on 31 July, reflecting heightened global volatility in technology stocks driven by quarterly earnings pressure and speculative trading swings. The sell-off mirrors weakness in global tech, particularly tied to US and South Korean market turbulence.
How much have FIIs invested in Indian equities recently?
Foreign institutional investors have been net buyers, purchasing equities worth a cumulative ₹7,360 crore over the last three trading days. This sustained inflow has provided support to large-cap Indian stocks.
What caused South Korea's Kospi to surge over 14% today?
The Kospi surged over 14% driven by a 25% spike in Samsung and a 21% surge in SK Hynix — two stocks that together account for 52% of the index's market capitalisation. Analysts noted such double-digit index moves are rare and could prompt institutional caution.
How are global oil prices affecting Indian markets?
Brent crude fell nearly 2% to $85.27 per barrel and WTI crude dropped over 2% to $81.60 per barrel, easing India's import bill and reducing inflationary pressure. Lower crude prices are broadly supportive of domestic consumption and monetary policy flexibility.
