Are Indian Stock Indices Rising Due to Positive Asian Markets?
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Synopsis
Indian stock indices are experiencing a significant rise today, driven by optimistic signals from Asian markets. As sectors such as PSU banks and IT attract buyers, analysts speculate on the stability of the Nifty range amidst global uncertainties. Stay informed on the latest market trends and what they mean for your investments.
Key Takeaways
- Indian benchmark indices opened higher.
- Positive cues from Asian markets influenced trading.
- Significant buying observed in PSU banks, IT, and automobile sectors.
- Analysts anticipate stability in the Nifty index range.
- Foreign institutional investors continue buying.
Mumbai, June 20 (NationPress) The Indian benchmark indices began the day on a high note this Friday, benefiting from favorable cues from Asian markets. Early trading saw significant purchases in the PSU bank, IT, and automobile sectors.
At approximately 9:25 am, the Sensex was up by 228.15 points, representing a 0.28 percent increase, reaching 81,590.02. The Nifty index gained 55.10 points, a 0.22 percent rise, to settle at 24,848.35.
The Nifty Bank also saw an increase of 102.35 points, or 0.18 percent, bringing it to 55,679.80. Meanwhile, the Nifty Midcap 100 index stood at 57,143.10 after a minor drop of 16.85 points, or 0.03 percent. The Nifty Smallcap 100 index recorded a decline to 17,950.60, down by 62.50 points, or 0.35 percent.
Analysts suggest that the Nifty has been fluctuating within the 24,500-25,000 range for around a month. The upper limit of this range may only be breached if there are developments towards de-escalating the Israel-Iran conflict or if the war unexpectedly concludes.
“There’s a degree of uncertainty regarding this. However, the lower boundary of the range is less likely to break as substantial buying, especially from domestic institutions, is anticipated on dips. If the conflict persists and crude prices exceed $85, we may see a breach of the lower range,” commented Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
In the Sensex category, notable gainers included Bajaj Finserv, UltraTech Cement, M&M, Eternal, SBI, Axis Bank, and Sun Pharma. Conversely, the top losers were IndusInd Bank, Bajaj Finance, Tech Mahindra, Kotak Mahindra Bank, and PowerGrid.
Foreign institutional investors (FIIs) continued their buying spree for the third straight day on June 19, acquiring equities worth ₹934.62 crore. Simultaneously, domestic institutional investors (DIIs) also maintained their purchasing trend, acquiring shares worth ₹605.97 crore on the same day.
Across Asian markets, cities like Bangkok, Japan, Seoul, Hong Kong, and China were trading positively, while Jakarta was the only market in the red.
The US stock market was closed on Thursday in observance of Juneteenth National Independence Day.
In the last trading session on Wednesday, the Dow Jones in the US closed at 42,171.66, down by 44.14 points, or 0.10 percent. The S&P 500 recorded a slight decline of 1.85 points, or 0.03 percent, closing at 5,980.87, while the Nasdaq rose by 25.18 points, or 0.13 percent, finishing at 19,546.27.
Point of View
The Indian stock market's upward trend reflects resilience amid global uncertainties. The continued buying by both foreign and domestic institutional investors signifies confidence in the market's fundamentals. Staying informed and adaptable is crucial for navigating these turbulent times, ensuring that investors make educated decisions.
NationPress
20/06/2025
Frequently Asked Questions
What factors are influencing the Indian stock market's rise?
The rise is primarily attributed to positive signals from Asian markets, with significant buying in the PSU bank, IT, and auto sectors.
How are foreign institutional investors reacting?
Foreign institutional investors have shown strong buying interest, acquiring equities worth ₹934.62 crore on June 19.
What are analysts predicting for the Nifty index?
Analysts believe the Nifty will remain within the 24,500-25,000 range unless significant geopolitical events occur.
Which sectors are performing well in early trading?
The PSU bank, IT, and automobile sectors are leading in performance during early trading.
What happened in the US stock market recently?
The US stock market was closed on Thursday in observance of Juneteenth National Independence Day, with mixed results earlier in the week.
