Indian Markets Edge Higher On Global Optimism & Fed Cut Hopes

Indian equity benchmarks opened Friday’s session with moderate gains as upbeat global sentiment and expectations of a US Federal Reserve rate cut next week fuelled investor optimism.

By 9:25 AM, the Sensex had climbed 114 points (0.14 per cent) to 81,663, while the Nifty gained 39 points (0.16 per cent) to reach 25,045.

Broader market indices outshone their large-cap peers. The Nifty Midcap 100 advanced 0.43 per cent and the Nifty Smallcap 100 rose 0.36 per cent.

Among major Nifty gainers were Adani Enterprises, Infosys, TCS, NTPC and Axis Bank. Bajaj Finserv, Titan Company and Tata Consumer Products were among the laggards.

The Nifty Auto index led the sectoral rally with a 1.01 per cent surge, followed by Nifty IT up 0.74 per cent and Nifty Metal up 0.59 per cent. FMCG stocks bucked the trend, with the index slipping 0.62 per cent to become the session’s top loser.

Positive Signals Beyond Markets

Investor confidence also drew strength from reports that US President Donald Trump has invited Union Commerce Minister Piyush Goyal to meet the US Trade Representative for discussions on a potential trade deal.

Market watchers see this as a possible step towards easing trade tensions between the two countries.

Analysts noted that the Nifty, which closed above 25,000 on Thursday for the seventh consecutive session, remains bullish while trading above its 5-, 20- and 50-day moving averages. Immediate resistance is pegged at 25,153, a level derived from the previous swing high.

Overnight, US indices closed at record highs on surging expectations of a rate cut, despite inflation accelerating to 2.9 per cent. Asian equities also traded higher, with Hong Kong’s Hang Seng Index up 1.42 per cent, Japan’s Nikkei rising 0.91 per cent and South Korea’s Kospi adding 1.15 per cent.

Meanwhile, FIIs net sold Indian equities worth ₹3,472 crore on Thursday, while DIIs purchased shares worth ₹4,046 crore, cushioning the market’s momentum.

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