Indian equity markets staged a sharp recovery on Friday morning as global stock indices turned green, dusting off recent geopolitical cues.
The BSE SENSEX started at 74,742.65 points, up by 910.10 points or 1.23 per cent, while the NSE NIFTY 50 began at 23,432.70 points, advancing 271.10 points or 1.17 per cent.
Market experts believe that foreign institutional investor (FII) debt flows into India are undergoing a major structural transformation following the landmark June 5 policy ordinance.
By completely eliminating the 12.5% long-term capital gains tax and the 20% withholding tax on interest income for FII investments in government securities (G-Secs), New Delhi has effectively eliminated the single largest frictional drag on foreign bond returns.
Analysts project this regulatory pivot could draw up to USD 50 billion over the next two years, providing a vital cushion for the rupee and significantly lowering sovereign borrowing costs at a time when equity outflows have been persistent.
The domestic momentum follows positive cues from the broader Asian landscape, where GIFT NIFTY traded at 23,464.00, up 0.26 per cent, and the Nikkei 225 surged over 3 per cent to 66,230.00.
Market experts are now observing technical resistance levels closely to see if the gains will hold.
