Indian equity markets began Thursday on a positive note, buoyed by favorable global cues from both Asian and US markets.
As of 9:54 AM, the Sensex had risen by 236 points, or 0.29%, to 81,759, while the Nifty gained 89 points, or 0.36%, reaching 25,007.
Midcap and smallcap stocks gained, with the Nifty Midcap 100 index rising 361 points, or 0.61%, to 59,299, and the Nifty Smallcap 100 index climbing 107 points, or 0.65%, to 19,238.
Markets Insight: Deven Mehata On Nifty Support At 25,000 & Resistance Levels
Deven Mehata, a Derivative Analyst at Choice Broking, noted, “Following a gap-up opening, Nifty is likely to find support at 25,000, followed by 24,900 and 24,800. On the upside, immediate resistance is at 25,150, with further resistance at 25,250 and 25,300.”
Most sectoral indices showed gains, with IT, PSU Bank, pharma, FMCG, metal, and energy sectors leading the way.
Among the Sensex constituents, Tata Steel, Bharti Airtel, Tech Mahindra, Kotak Mahindra Bank, Wipro, NTPC, JSW Steel, SBI, Infosys, Power Grid, HCL Tech, HDFC Bank, and IndusInd Bank were notable gainers. Conversely, Tata Motors, Maruti Suzuki, Axis Bank, Bajaj Finserv, ICICI Bank, Nestle, and M&M faced declines.
Asian markets were predominantly positive, with Tokyo, Seoul, Bangkok, and Jakarta all trading higher. However, Shanghai and Hong Kong lagged. The American markets also closed higher on Wednesday.
Market experts highlighted that recent US inflation data has been somewhat favorable for markets.
August’s CPI inflation came in at 0.2%, reducing the annual rate from 2.9% to 2.5%.
This improvement supports the possibility of a rate cut by the Fed in September.
However, with core inflation remaining high at 3.2%, the Fed is likely to opt for a modest 25 basis point cut rather than a more substantial reduction.
“In brief, the favorable inflation conditions and potential for rate cuts are seen as positives for the stock markets,” experts commented.
Foreign Institutional Investors (FIIs) continued their buying spree, acquiring equities worth Rs 1,755 crore on 11 September. In contrast, Domestic Institutional Investors (DIIs) sold equities worth Rs 230 crore on the same day.
Also Read: Adani Ports & SEZ To Develop Multipurpose Berth At Kandla Port
