Indian equity markets opened higher on July 29, with the Sensex rising 729 points and the Nifty nearing 24,200. The surge was primarily driven by a 2.5% gain in the IT sector, supported by continuous foreign institutional buying and stable interest rate expectations from the US Federal Reserve.
Indian stock market indices opened with strong gains on July 29, showing positive sentiment across the broader market. The Sensex climbed 729.32 points to reach 77,495.24, while the Nifty gained 205.25 points to trade at 24,190.60. Market breadth remained favorable, with approximately 1,655 stocks advancing against 689 decliners, reflecting widespread participation in the morning session.
IT Sector Performance and Market Sentiment
The most prominent contributor to this morning's rally was the information technology sector, which jumped 2.5%. This move marks the third straight day of gains for IT stocks, which have collectively risen over 8% during this period. For investors, this shift is notable as it represents a rotation in interest toward IT services companies, which had previously faced pressure. This recovery in Indian IT shares comes at a time when global sentiment for AI-focused and semiconductor stocks, often tracked through indices like South Korea's Kospi, has shown weakness.
FII Activity and Technical Levels
Supporting the current market momentum is consistent buying by foreign institutional investors (FIIs). Data indicates that FIIs were net buyers for the fifth consecutive session, purchasing shares worth approximately ₹755 crore on Tuesday. From a technical perspective, the Nifty index holding firmly above the 24,000 level is being viewed by market participants as a sign of underlying strength, which may provide a base for sustained price action in the near term.
Global Cues and Interest Rate Expectations
Global factors continue to influence domestic investor decisions, particularly regarding the US Federal Reserve's monetary policy. Current market expectations suggest that the Federal Reserve will likely maintain benchmark interest rates at their existing levels. While some policymakers have expressed caution regarding inflation, the anticipation of stability in borrowing costs has offered a degree of comfort to equity markets worldwide. Investors are expected to focus on future commentary from the Federal Reserve, which may provide further clarity on the timing of potential shifts in interest rate policies.
Moving forward, the sustainability of this rally will depend on whether IT companies can maintain their current growth momentum in the coming quarters and whether foreign investors continue their buying streak. Additionally, participants will keep a close eye on the Nifty's ability to maintain its position above the 24,000 mark, as well as any official updates regarding US monetary policy that could impact global risk appetite.