Mumbai (Maharashtra): Indian markets opened with gains on Friday following the rally in global stock markets. Both benchmark indices, Nifty 50 and Sensex, gained at the opening.
The Nifty 50 index surged 0.79 per cent, or 191 points, to 24,334.85 at the opening session, while the BSE Sensex gained 646 points, or 0.82 per cent, to open at 79,751.90 points.
At 10:34 am, Sensex was trading 250.48 points up at 79,356.36, whereas Nifty was trading 83.40 points higher at 24,227.15.
Markets globally have turned around smartly from the August 5 sell-off, which was triggered by US recession fears and the unwinding of Yen carry trades. According to the latest data on US inflation and unemployment, there is no indication of an economy tipping into recession.
“Strong global cues are supportive for the Indian markets. Of the three global risks at the start of the week, all three have watered down considerably. Diplomacy has avoided an Iran attack on Israel. US CPI and PPI numbers show a deflationary trend and lower unemployment benefit claims numbers lifted the chances of a soft landing in the US economy” said Ajay Bagga, Banking and Market Expert.
He also added “For India, the one issue is continued FPI selling which has taken out nearly $ 2.8 billion from the cash equities segment this month so far. Sideways markets have marked time in a consolidation phase and may be setting up for another attempt at all-time highs over the next week”.
In the broad market indices, Nifty Midcap 50, Nifty Small Cap 100, and Nifty Micro Cap 250 indices surged more than 1 per cent during the opening session. The other indices also gained.
In the sectoral indices, Nifty Auto, Nifty Media, and Nifty IT led in gains with a surge of more than 1 per cent. Nifty Bank also gained 0.91 per cent.
In the Nifty 50 stocks list, 46 stocks advanced while 4 stocks declined at the time of filing this report.
“Real strength may emerge if indices manage to close above the level of 24500/80000, pulling the market up to 24900/81200. Our advice is to reduce weak long positions until the market trades below 24500 levels. Bank-Nifty is currently sustaining above the 50-day SMA (simple moving average) level but is struggling to surpass the level of 50500. As long as the index doesn’t cross 50500, it is expected to remain range-bound” said Shrikant Chauhan, Head Equity Research, Kotak Securities.
In the Asian markets, Japan’s Nikkei 225 index surged around 3 per cent to 37,800 points. Hong Kong’s Hang Seng index also surged more than 1.70 per cent, Taiwan’s Taiwan Weighted index gained 1.95 per cent, and South Korea’s KOSPI joined the rally with a surge of 1.75 per cent.
In the US markets, the S&P 500 surged by 1.61 per cent while the Nasdaq rallied with a gain of 2.34 per cent on Thursday.
On Wednesday, domestic indices ended a volatile session on a positive note. The Sensex rose by 149.85 points, or 0.19 per cent, to close at 79,105.88, while the Nifty 50 edged up by 4.75 points, or 0.02 per cent, to 24,143.75. The Indian stock market was closed on Thursday for Independence Day 2024. (ANI)
