Indian Stock Market Begins Trading on a Positive Note Due to Global Influences
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Synopsis
On January 16, the Indian stock market opened higher, driven by positive global cues and optimism for peace in Gaza. Key sectors like PSU banks and financial services saw increased buying activity. The markets reflected significant gains as investors reacted to favorable macroeconomic indicators from the US.
Key Takeaways
- The Indian stock market opened higher on positive global cues.
- Increased buying was noted in PSU banks and financial services.
- Sensex and Nifty both experienced significant gains.
- Experts recommend focusing on large-cap stocks for stability.
- FIIs sold equities while domestic institutions bought on January 15.
Mumbai, Jan 16 (NationPress) The Indian stock market commenced trading on a positive note on Thursday, buoyed by favorable global signals, particularly the optimism surrounding a potential resolution to the conflict in Gaza. This led to increased buying activity in the PSU banking and financial services sectors.
As of approximately 9:22 am, the Sensex was positioned at 77,157.74, reflecting an increase of 433.66 points or 0.57 percent, while the Nifty index was at 23,349.15, up by 135.95 points or 0.59 percent.
On the National Stock Exchange (NSE), 1,175 stocks showed positive movement, contrasted with 139 stocks that declined.
The Nifty Bank index rose by 526.50 points or 1.08 percent to reach 49,278.20. Meanwhile, the Nifty Midcap 100 index stood at 54,673.70, gaining 774.70 points or 1.44 percent. The Nifty Smallcap 100 index increased to 17,636.85 with an uptick of 282.90 points or 1.63 percent.
Experts indicate that macroeconomic indicators from the US suggest that with Donald Trump's inauguration approaching, the Trump trade has reached its peak. The decline in US bond yields and the dollar index serves as evidence of this shift.
"The recent decline in the dollar index and bond yields has been supported by lower-than-expected CPI inflation figures in the US, renewing hopes for more rate cuts from the Federal Reserve this year. Additionally, the prospect of an end to the Gaza conflict is a significant relief. This global environment is favorable for the market," stated financial analysts.
Within the Sensex constituents, Zomato, Adani Ports, Tech Mahindra, IndusInd Bank, SBI, UltraTech Cement, and Bajaj Finserv emerged as the leading gainers. Conversely, Hindustan Unilever Limited, ITC, Nestle India, and Titan were noted as the primary losers.
The Dow Jones Industrial Average rose by 1.65 percent to close at 43,221.55. The S&P 500 increased 1.83 percent to 5,949.91, while the Nasdaq climbed 2.45 percent to finish at 19,511.23 during the previous trading session.
In Asian markets, countries like China, Bangkok, Jakarta, Seoul, Hong Kong, and Japan were also trading positively.
Experts recommend that investors should concentrate on large-cap stocks, which have shown greater stability compared to mid and small-cap stocks. Sectors with growth potential, such as Pharma, healthcare, IT, and discretionary consumption, are expected to remain resilient.
In other news, foreign institutional investors (FIIs) divested equities worth Rs 4,533.49 crore on January 15, while domestic institutions purchased equities totaling Rs 3,682.54 crore on the same day.
