The equity markets opened higher on Thursday, driven by positive global cues and cooling US inflation data. Leading the gains among blue-chip stocks was NTPC, with the Sensex and Nifty both trading in the green. The Sensex opened at 77,319.50 and is currently trading at 77,016.42, gaining 292.34 points or 0.38 per cent, while the Nifty opened higher at 23,377.25 and is now at 23,328.00, up by 114.80 points or 0.49 per cent.
One of the notable developments that added to the market sentiment was the announcement of the disbanding of short-selling firm Hindenburg Research. The firm had previously triggered significant market movements in Indian stocks through its investigative reports.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that the lower-than-expected US core inflation data has reignited hopes of more rate cuts by the Federal Reserve this year, adding to the positive global backdrop coupled with hopes of an end to the Gaza conflict.
Among sectoral movements, power stocks emerged as top performers, with NTPC surging 4.01 per cent and Power Grid Corporation gaining 2.88 per cent. The rally in power utilities came amid growing institutional interest in the sector. Retail major Trent continued its strong momentum, rising 3.86 per cent, while auto stocks showed mixed trends.
Banking stocks witnessed divergent moves despite the Reserve Bank of India’s announcement of daily Variable Rate Repo (VRR) auctions starting Friday. While Kotak Bank gained 2.14 per cent, Axis Bank fell 2.53 per cent.
The market analysts expressed concerns about India’s rising debt costs, with VLA Ambala, Co-Founder of Stock Market Today, noting that India’s interest cost on debt is likely to exceed previous highs.
The depreciating rupee, falling below 86 against the dollar, has raised concerns, potentially affecting offshore borrowing for large corporations.
Technically, the market shows signs of potential upward movement, with key support at 22,951 holding for Nifty, indicating a bullish outlook for the day.
Global markets set a positive tone after Wall Street’s strong performance overnight, with significant movements in oil markets and gold prices. Investors are now focusing on upcoming quarterly results from major companies and monitoring ceasefire negotiations in the Israel-Hamas conflict.
In conclusion, the equity markets are experiencing a positive trend driven by various factors both domestically and globally. Investors are advised to stay informed and watch for key developments in the coming days.
