Synopsis: Indian equity markets started Thursday's session on a positive note, driven by strong buying in blue-chip stocks such as HDFC Bank and SBI. The Sensex gained 95 points, and the Nifty climbed 48 points in early trade. However, the broader market remains cautious as investors await clarity on U.S. policies and their potential global economic impact.
Indian equity markets opened in the green on Thursday, buoyed by gains in prominent blue-chip stocks.
The BSE Sensex rose by 95 points to reach 80,329.08, while the NSE Nifty advanced by 48.15 points to trade at 24,323.05 during early hours.
Among the top gainers in the Sensex 30 pack were HDFC Bank, Adani Ports, ITC, State Bank of India (SBI), Hindustan Unilever, Tata Motors, IndusInd Bank, and Tata Steel.
On the flip side, major IT and auto sector stocks such as Tech Mahindra, Infosys, HCL Technologies, Mahindra & Mahindra, Tata Consultancy Services, and Power Grid lagged behind.
Foreign Institutional Investors (FIIs) Turn Net Buyers:
FIIs, which have been significant market influencers, provided much-needed support by turning net buyers, with purchases worth Rs. 7.78 crore on Wednesday.
This marks a departure from the consistent selling pressure seen in recent weeks.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “The recent cessation of relentless selling by FIIs is a positive development, likely to boost retail investor confidence. However, the market remains in a consolidation phase, and strong optimism should be tempered, given the challenges posed by a rising dollar and cautious institutional activity.”
Global Market Trends and Economic Factors:
Asian markets presented a mixed performance on Thursday.
Seoul and Tokyo traded in the green, while Shanghai and Hong Kong remained in the red.
The U.S. markets closed lower on Wednesday, reflecting concerns over potential economic policy changes under the new administration.
Adding to global uncertainties, oil prices saw a slight dip, with Brent crude trading at USD 72.68 per barrel, down by 0.21%.
Analysts highlighted that global investors are awaiting clarity on the trade policies of U.S. President-elect Donald Trump and their implications for the global economy.
Cautious Optimism Ahead:
The markets continue to consolidate as investors take a wait-and-watch approach.
While retail buying is expected to pick up in response to stable FII activity, experts caution against over-optimism given the complex interplay of global factors.
In conclusion, the indian equity markets’ positive opening on Thursday was supported by strong buying in blue-chip stocks like HDFC Bank and SBI, alongside a reprieve from FII selling pressure.
However, global economic uncertainties, including rising U.S. inflation, trade policy concerns, and fluctuating oil prices, could keep the markets volatile in the near term.
Investors are advised to focus on quality stocks and remain cautious amidst the ongoing consolidation phase.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial or investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
