Is the Indian Stock Market Gaining Momentum Amid Mixed Global Signals?

Mumbai, June 5 (NationPress) The domestic benchmark indices opened positively on Thursday, driven by mixed global cues. Early trading showed interest primarily in the pharma, auto, and IT sectors.

As of 9:29 am, the Sensex was up by 268.8 points, or 0.33 percent, reaching 81,267.09, while the Nifty increased by 82.75 points, or 0.34 percent, to 24,702.95.

Conversely, the Nifty Bank experienced a slight decline of 29.70 points, or 0.05 percent, settling at 55,647.15. The Nifty Midcap 100 index rose to 58,188, gaining 263.35 points, or 0.45 percent, while the Nifty Smallcap 100 index surged to 18,398.75, up 141.65 points, or 0.78 percent.

Market analysts noted that the Nifty closed higher on Wednesday, along with a significant drop of nearly 5 percent in the India VIX, which is favorable for bullish investors.

“For the Nifty, 24,462 remains a crucial level that keeps optimism alive. If this level is breached, the market may retrace to a key support level at 23,800. Short-term resistance is seen between 24,760 and 24,882. Globally, stock bulls have favorable conditions,” stated Akshay Chinchalkar, Head of Research at Axis Securities.

Among the top gainers in the Sensex, companies like Eternal, PowerGrid, M&M, HDFC Bank, HCL Tech, TCS, IndusInd Bank, and Kotak Mahindra Bank stood out. In contrast, Nestle India, Titan, Bajaj Finance, Tata Motors, and Tech Mahindra were the biggest losers.

Analysts predict that geopolitical and economic factors will influence market dynamics in the near term.

“A significant economic indicator is the sharp decline in the US ISM PMI data, suggesting a rapid slowdown in the US economy. The US 10-year bond yield has fallen to 4.36 percent and is likely to trend lower due to the economic slowdown,” remarked Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.

This situation is projected to benefit emerging markets like India in the medium term. Experts recommend adopting a buy-on-dips strategy. Rate-sensitive stocks are expected to be favored in anticipation of an upcoming rate cut by the RBI MPC.

In the Asian markets, Hong Kong, Bangkok, Seoul, China, and Jakarta traded in the green, while only Japan was in the red.

In the previous trading session, the Dow Jones in the US closed at 42,427.74, down by 91.90 points, or 0.22 percent. The S&P 500 managed a slight gain of 0.44 points, or 0.01 percent, reaching 5,970.81, while the Nasdaq rose by 61.53 points, or 0.32 percent, to 19,460.49.

On the institutional front, foreign institutional investors (FIIs) were net buyers, acquiring equities worth 1,076.18 crore on June 4, while domestic institutional investors (DIIs) bought shares worth 2,566.82 crore.