Benchmark equity indices, the Sensex and Nifty, saw gains in early trading on Thursday, supported by a positive trend in global markets and buying interest in blue-chip stocks. The BSE Sensex rose by 204.04 points, or 0.25%, reaching 81,109.34, marking its sixth consecutive session of gains. The NSE Nifty advanced by 49.55 points, or 0.20%, to 24,819.75.
Factors driving market uptrend
Market analysts attributed the early gains to falling oil prices driven by demand concerns and the Federal Reserve’s meeting minutes suggesting potential rate cuts due to easing inflation and rising unemployment. "The Federal Reserve is likely to adopt a dovish stance, initiating rate cuts that could stabilize the markets," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sectoral performance and institutional activity
Among Sensex constituents, major gainers included Bharti Airtel, Infosys, Asian Paints, Tata Steel, State Bank of India, HDFC Bank, ICICI Bank, and Tech Mahindra. Conversely, Power Grid, Tata Consultancy Services, Tata Motors, Mahindra & Mahindra, NTPC, and Adani Ports were among the laggards.
Foreign Institutional Investors (FIIs) sold equities worth ₹799.74 crore on Wednesday, while Domestic Institutional Investors (DIIs) purchased equities worth ₹3,097.45 crore on the same day. Vijayakumar noted that while FIIs’ selling is diminishing, retail investors are likely to continue their buy-on-dips strategy, which has proven effective in the current bull market.
Global and domestic market trends
Asian markets displayed mixed results with Tokyo and Hong Kong in positive territory, while Shanghai and Seoul traded lower. U.S. markets closed higher on Wednesday. Global oil prices saw a minor decline, with Brent crude falling by 0.03% to $76.03 per barrel.
On Wednesday, the Sensex closed at 80,905.30, up by 102.44 points or 0.13%, and the Nifty ended at 24,770.20, rising by 71.35 points or 0.29%.
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