Mumbai Equity Indices Open Strong Amid Positive Global Cues
Indian equity indices commenced Thursday’s trading session on a positive note, buoyed by favorable global cues from both Asian and US markets. At 9:54 a.m. IST, the BSE Sensex gained 236 points, or 0.29%, reaching 81,759, while the NSE Nifty advanced 89 points, or 0.36%, to stand at 25,007.
Investor enthusiasm was evident across midcap and smallcap segments. The Nifty Midcap 100 index rose by 361 points, or 0.61%, to 59,299, and the Nifty Smallcap 100 index climbed 107 points, or 0.65%, to 19,238.
Deven Mehata, a derivative analyst at Choice Broking, commented on the market outlook: “Following a gap-up opening, Nifty is expected to find support at 25,000, with subsequent levels at 24,900 and 24,800. On the upside, 25,150 represents immediate resistance, with further resistance at 25,250 and 25,300.”
Sectoral indices largely mirrored the bullish sentiment, with IT, PSU Bank, pharma, FMCG, metal, and energy sectors emerging as key gainers. In the Sensex pack, notable performers included Tata Steel, Bharti Airtel, Tech Mahindra, Kotak Mahindra, Wipro, NTPC, JSW Steel, SBI, Infosys, Power Grid, HCL Tech, HDFC Bank, and IndusInd Bank. Conversely, Tata Motors, Maruti Suzuki, Axis Bank, Bajaj Finserv, ICICI Bank, Nestle, and Mahindra & Mahindra faced declines.
Asian markets were predominantly in the green, with Tokyo, Seoul, Bangkok, and Jakarta showing positive movement, while Shanghai and Hong Kong lagged. The American markets concluded in the green on Wednesday, further bolstering investor sentiment.
Market analysts noted that recent US inflation data has been mildly positive for equities. August’s Consumer Price Index (CPI) inflation came in at 0.2%, reducing the year-over-year inflation rate to 2.5% from the previous 2.9%. This data suggests a potential for a Federal Reserve rate cut in September. However, with core inflation remaining elevated at 3.2%, the Fed is anticipated to approach rate adjustments with caution, possibly opting for a 25 basis point cut rather than a more aggressive 50 basis point reduction.
“Overall, the favorable inflation outlook and expectations for rate cuts present positive prospects for stock markets,” experts added.
Foreign Institutional Investors (FIIs) continued their buying spree, purchasing equities worth ₹1,755 crore on September 11. In contrast, Domestic Institutional Investors (DIIs) were net sellers, offloading equities valued at ₹230 crore on the same day.
