Are Indian Stock Markets Gaining Due to Global Cues?
Click to start listening
Synopsis
On September 12, the Indian stock market opened on a positive note, buoyed by strong global signals and expectations of a Federal Reserve rate cut. With major indices showing gains, this trend reflects growing investor confidence amidst significant financial developments.
Key Takeaways
- Indian stock market shows modest gains.
- Strong global cues support market optimism.
- Anticipation of a US Federal Reserve rate cut drives investor sentiment.
- Nifty Auto sector leads with significant gains.
- Investor confidence appears robust amidst global economic developments.
Mumbai, Sep 12 (NationPress) The Indian benchmark indices started the day with modest gains on Friday, bolstered by strong global cues and increasing anticipation of a US Federal Reserve rate cut next week.
As of 9:25 AM, the Sensex rose by 114 points, translating to a 0.14 percent increase, reaching 81,663, while the Nifty gained 39 points or 0.16 percent, settling at 25,045.
The broadcap indices outperformed the benchmark indices, with the Nifty Midcap 100 climbing 0.43 percent and the Nifty Small Cap 100 increasing by 0.36 percent.
Among the major gainers on Nifty were Adani Enterprises, Infosys, TCS, NTPC, and Axis Bank, while the decliners included Bajaj Finserv, Titan Company, and Tata Consumer Products.
In sectoral performance, the Nifty Auto emerged as the top gainer, soaring by 1.01 percent. Other notable gainers included Nifty IT (up 0.74 percent) and Nifty Metal (up 0.59 percent), whereas Nifty FMCG experienced a decline of 0.62 percent.
Investor optimism received a boost as US President Donald Trump reportedly invited Union Commerce Minister Piyush Goyal for discussions with the US Trade Representative regarding a potential trade agreement, which could alleviate tensions between the two nations.
On Thursday, the Nifty successfully surpassed the 25,000 mark and continued its upward trend for the seventh consecutive day, closing at its highest level since August 21. The Nifty also managed to break above the downward sloping trend line resistance on the daily chart.
Analysts indicate that the short-term outlook for the Nifty remains bullish, as it has maintained its position above the 5, 20, and 50 DMAs. Immediate resistance for Nifty is noted at 25153, based on the previous swing high.
The US markets surged to new highs overnight as jobless claims surged to a four-year peak of 263,000, reinforcing expectations for Federal Reserve rate cuts, even as August inflation accelerated to 2.9 percent.
The Dow Jones Industrial Average saw an increase of 1.36 percent, while the Nasdaq rose by 0.72 percent and the S&P 500 gained 0.85 percent.
Currently, the markets are pricing in a 94.8 percent likelihood of a quarter-point Fed cut next week, with only a 5.2 percent chance of a half-point cut.
Most Asian markets also reported strong gains during the morning session. China’s Shanghai index increased by 0.24 percent, Shenzhen added 0.15 percent, Japan's Nikkei climbed 0.91 percent, while Hong Kong’s Hang Seng Index rose by 1.42 percent. South Korea’s Kospi edged up by 1.15 percent.
On Thursday, foreign institutional investors (FIIs) net sold equities worth Rs 3,472 crore, while domestic institutional investors (DIIs) net bought shares valued at Rs 4,046 crore.
Point of View
The current gains in the Indian stock market signify a resilient economy reacting positively to global cues. The anticipated rate cut from the US Federal Reserve is seen as a beacon of hope for continued economic growth. However, it is essential to monitor market fluctuations closely as investor sentiment can change rapidly.
NationPress
08/11/2025
Frequently Asked Questions
What factors are driving the gains in the Indian stock market?
The gains are primarily driven by strong global cues and growing expectations of a US Federal Reserve rate cut.
Which sectors are performing well?
Sectors like Nifty Auto, IT, and Metal have shown significant gains, while FMCG has faced a decline.
What was the performance of the US markets?
US markets surged to record highs with the Dow Jones up by 1.36 percent and Nasdaq by 0.72 percent.
