Indian Equity Markets Show Modest Gains Amidst Weak Global Signals

Indian equity indices showed modest gains in early trading on Thursday, despite facing pressure from weak global cues.

As of 9:45 AM, the Sensex edged up by 69 points, or 0.09%, to reach 81,990, while the Nifty gained 29 points, or 0.12%, settling at 25,070.

The morning session saw buying interest particularly in midcap and smallcap stocks.

The Nifty Midcap 100 index rose by 291 points, or 0.49%, to 59,330, and the Nifty Smallcap 100 index increased by 88 points, or 0.46%, to 19,405.

Within the Sensex index, notable gainers included Asian Paints, Sun Pharma, Bajaj Finance, Bharti Airtel, and Ultratech Cement. Conversely, Tata Motors, Wipro, ICICI Bank, and Infosys were among the prominent losers.

Indian & Global Rate Cut Expectations Boost Investor Sentiment, Analysts Say

Market analysts suggest that expectations of upcoming rate cuts by the Federal Reserve and the Indian Monetary Policy Committee (MPC) are influencing investor sentiment.

“The Fed is likely to start its rate-cut cycle this month, and we expect the MPC to follow suit with two rate cuts in FY25. Currently, banking stocks, which offer attractive valuations, are recommended for medium to long-term investors. Defensive sectors like Pharma and FMCG are also likely to continue appealing to investors,” noted a market expert.

Sectoral performance varied, with PSU Bank, Pharma, FMCG, Infrastructure, and IT sectors showing gains, while Auto, Metal, Realty, Energy, and Private Bank sectors lagged.

Deven Mehata, Derivative Analyst at Choice Broking, provided technical insights, indicating that the Nifty might find support at 25,000, with further support levels at 24,900 and 24,800.

Immediate resistance levels are at 25,150, 25,250, and 25,300.

Globally, Asian markets largely trended downwards, with significant declines in Tokyo, Hong Kong, Seoul, and Bangkok.

The US markets closed mixed on Wednesday, adding to the cautious sentiment.

Foreign Institutional Investors (FIIs) continued their buying spree, purchasing equities worth ₹2,208 crore on September 10, while Domestic Institutional Investors (DIIs) sold equities worth ₹275 crore on the same day.

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