Indian equity indices Sensex and Nifty surged in early trade, rising by 1.5 percent, driven by gains in IT stocks and fresh foreign institutional investment, continuing their upward momentum
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The benchmark equity indices Sensex and Nifty began Thursday on a positive note, continuing their upward momentum for the fifth consecutive session. This growth was supported by strong buying in IT stocks, following a rally in US markets and fresh foreign fund inflows.
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In early trade, the 30-share BSE benchmark Sensex surged by 242.54 points to 81,198.87, while the NSE Nifty rose by 72.5 points to 24,539.95. Investors were buoyed by gains in IT stocks, with companies like Infosys, Tata Consultancy Services, and Tech Mahindra leading the charge. Other notable gainers included Bharti Airtel, UltraTech Cement, Titan, Adani Ports, and Bajaj Finance.
However, some stocks lagged behind, with NTPC, JSW Steel, Asian Paints, and HDFC Bank among the underperformers.
The upward trend in Indian markets was largely driven by the strong performance of US markets on Wednesday, with the Dow Jones Industrial Average surging past the 45,000 mark for the first time. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the US market's rally was underpinned by strong growth and declining inflation. Furthermore, US Federal Reserve Chair Jerome Powell's remarks about the "remarkably good shape" of the economy provided further optimism for global markets.
Foreign Institutional Investors (FIIs) were also active in the Indian markets, purchasing equities worth Rs 1,797.60 crore on Wednesday, according to exchange data. This has been seen as a positive signal for the market, particularly for large-cap stocks. The return of FIIs as buyers is considered to provide a boost to market sentiment.
In the Asian markets, Tokyo and Shanghai were trading higher, reflecting the global optimism, while Seoul and Hong Kong saw declines. Meanwhile, global oil benchmark Brent crude rose slightly by 0.08 per cent to USD 72.37 a barrel, supporting the broader market sentiment.
On Wednesday, the Sensex had climbed by 110.58 points or 0.14 per cent to close at 80,956.33, while the Nifty edged up marginally by 10.30 points or 0.04 per cent to 24,467.45.
The continued upward movement of the Indian markets, supported by global cues and foreign inflows, indicates a positive outlook, although the volatility driven by crude oil prices and other global factors remains a concern for traders. As per PTI reports, market participants are keeping a close eye on global developments, especially in the US and other Asian markets, to gauge the future direction of domestic equity indices.
(With inputs from PTI)
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