Indian equity markets began the trading day on a strong note Friday, buoyed by optimistic global cues and speculation about a potential rate cut by the US Federal Reserve next month.
By 9:50 a.m., the Sensex had climbed 608 points, or 0.76%, reaching 79,714, while the Nifty was up 166 points, or 0.69%, standing at 24,310.
The early market trend was decidedly bullish. On the National Stock Exchange (NSE), 1,704 stocks opened in the green, compared to 345 in the red.
Market Volatility
The INDIVIX index, which measures market volatility, was trading at 14.79, reflecting a decrease of 4.21% from the previous session and indicating a stable market environment.
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In addition to strong performances in large-cap stocks, mid-cap and small-cap stocks also showed positive movement. The Nifty Midcap 100 index rose to 57,057, an increase of 522 points or 0.92%, while the Nifty Smallcap 100 index gained 187 points or 0.25%, reaching 18,274.
All indices were in positive territory, with notable gains in sectors including auto, IT, PSU banks, financial services, pharmaceuticals, FMCG, real estate, energy, and healthcare.
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, commented, “The Nifty has shown a consolidated session with limited range-bound movement. The 24,000 level remains a critical support zone that needs to maintain to preserve the overall upward trend. For a more positive bias, the index must sustain above 24,200 and break through the resistance barrier of 24,400 to strengthen the trend.”
Foreign Institutional Investors
In terms of institutional activity, foreign institutional investors (FIIs) sold equities worth Rs 2,595 crore on August 14, while domestic institutional investors (DIIs) sold equities worth Rs 2,236 crore on the same day.
Asian markets were also in the green, with Tokyo, Hong Kong, Shanghai, Seoul, and Jakarta posting gains. The US markets had closed positively on Thursday.
Market analysts noted that global stock markets have rebounded sharply from the sell-off on August 5, which was driven by US recession fears and the unwinding of the yen carry trade. Recent data on US inflation and unemployment suggest that the economy is not on the brink of a recession.
