Mumbai, Nov 12: Indian equity markets staged an early recovery on Thursday after opening on a cautious note, supported by a decline in international crude oil prices and continued buying interest from foreign institutional investors (FIIs). The recovery lifted both benchmark indices into positive territory, although weakness in select sectors limited the overall gains.
The BSE Sensex climbed to an intraday high of 82,057.39, gaining 316 points or 0.38 per cent during morning trade. The NSE Nifty50 advanced 86 points or 0.34 per cent to trade at 25,342.
The benchmarks had initially opened lower, reflecting cautious sentiment across Asian markets. However, easing crude prices and sustained foreign investor participation helped improve market sentiment as trading progressed.
Sectoral performance remained mixed. The Nifty IT index emerged as the biggest drag, declining more than 1 per cent, while the Auto and Healthcare indices also registered losses of nearly 1 per cent. On the other hand, PSU Bank stocks gained 0.23 per cent, the Media index advanced 0.20 per cent, and Consumer Durables added 0.14 per cent.
A significant factor supporting the market's recent momentum has been the sharp reversal in foreign institutional investor activity. After remaining net sellers for much of the previous period, FIIs have turned aggressive buyers in November, investing approximately Rs 65,735 crore in Indian equities so far this month. Domestic institutional investors (DIIs), meanwhile, have shifted towards profit booking.
The Nifty has gained around 9.55 per cent over the first seven trading sessions of November, reflecting renewed confidence among investors. Strong corporate earnings, particularly encouraging second-quarter results, have also strengthened expectations of improved business performance and earnings growth.
The changing balance between foreign and domestic institutional investors is likely to remain an important influence on market direction in the coming sessions. While sustained FII inflows could provide further support to equities, continued profit booking by domestic institutions may limit the pace of the rally.
Crude oil prices offered additional relief to the domestic market. Brent crude, the international benchmark, declined by more than 1 per cent to $91.51 per barrel, while US West Texas Intermediate (WTI) crude slipped nearly 1 per cent to $85.41 per barrel.
Lower crude prices are particularly important for India, which depends heavily on imported oil. A sustained decline could help ease pressure on the country's import bill, inflation, currency and operating costs for fuel-intensive industries, including aviation, transportation and manufacturing.
Investors are also keeping a close watch on India's October Consumer Price Index (CPI) inflation data, scheduled for release on Thursday. The inflation reading will provide fresh insight into price pressures and could influence expectations surrounding monetary policy and interest rates.
Meanwhile, Asian markets traded mixed as investors assessed fresh volatility in Nvidia, a major beneficiary of the global artificial intelligence boom. US equities, however, closed higher on Wednesday as concerns surrounding heavy AI-related spending eased.
Going forward, movements in crude oil prices, institutional fund flows, corporate earnings and domestic inflation will remain key factors shaping investor sentiment. Despite the recent rally, market participants are likely to remain selective, with sector-specific performance and global developments influencing the next phase of trading.
