Image Source : FILE Bombay Stock Exchange Limited building.
In early trading, the Sensex saw a significant jump, gaining 805.96 points to reach 79,911.84. Similarly, the Nifty index surged by 252.05 points, climbing to 24,395.80. This strong market performance reflects positive investor sentiment and robust economic indicators. All 30 Sensex stocks were trading higher, with major gainers including Mahindra & Mahindra, Tata Motors, Tech Mahindra, Tata Consultancy Services, HCL Technologies, Reliance Industries, ICICI Bank, JSW Steel, Infosys, and IndusInd Bank.
Global market trends
Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, were trading significantly higher. The US markets also ended with sharp gains on Thursday, recovering from earlier sell-offs driven by recession fears and yen carry trade unwinding. Positive data on US inflation and unemployment, along with expectations of a Federal Reserve rate cut in September, have bolstered market sentiment.
Investment flows and oil prices
Foreign Institutional Investors (FIIs) sold equities worth Rs 2,595.27 crore on Wednesday, while Domestic Institutional Investors (DIIs) purchased equities worth Rs 2,236.21 crore. Global oil benchmark Brent crude dipped 0.25% to USD 80.84 per barrel.
Market outlook
Traders are adopting a risk-on approach, influenced by strong Wall Street performance, anticipated rate cuts by the Federal Reserve, and robust US retail sales figures. The Indian stock markets were closed on Thursday for Independence Day. On Wednesday, the BSE benchmark rose by 149.85 points to settle at 79,105.88, while the NSE Nifty edged up by 4.75 points to 24,143.75.
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