What Is Driving the Indian Stock Market Upward Today?
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Synopsis
The Indian stock market has opened on a high note, with the Sensex climbing 400 points in early trading. As global cues remain mixed, sectors like PSU banks and financial services are seeing a significant influx of buying. Join us as we delve into the factors influencing these movements today!
Key Takeaways
- Sensex opens 400 points higher.
- Buying activity in PSU banks and financial services.
- Nifty Midcap 100 shows positive movement.
- Support at 23,800 is crucial.
- Continued foreign inflows bolster market sentiment.
Mumbai, April 28 (NationPress) The Indian equity benchmark indices started the week on a positive note on Monday, influenced by a mix of global cues. Early trading saw robust buying activity in the PSU bank and financial services sectors.
By 9:30 AM, the Sensex surged by 400.7 points or 0.51 percent, reaching 79,613.28, while the Nifty rose 88.65 points or 0.37 percent to hit 24,128.00.
The Nifty Bank index saw an increase of 347.85 points or 0.64 percent, climbing to 55,011.90. Meanwhile, the Nifty Midcap 100 index stood at 53,801.00, gaining 230.80 points or 0.43 percent. However, the Nifty Smallcap 100 index fell to 16,518.65, down 28.55 points or 0.17 percent.
Market analysts expected a robust opening, as indicated by trends from the GIFT Nifty, which suggested a gap-up of approximately 110 points for the Nifty. This optimistic outlook followed a volatile session on Friday, where the Indian benchmarks closed down by more than 0.5 percent.
After facing resistance around 24,350, the Nifty experienced profit booking with significant fluctuations, ultimately settling near the crucial 200-period SMA at the 24,050 level. Despite some uncertainty, the overall trend remains positive.
“We continue to hold a positive outlook, as the index finds significant near-term support around 23,800. If this level holds, we could see a positive rally in the upcoming days,” stated Vaishali Parekh, Vice President of Technical Research at PL Capital Group.
“For today, support is at 23,800 while resistance is anticipated at 24,300,” Parekh continued.
Among the top gainers in the Sensex pack were M&M, Eternal, Sun Pharma, IndusInd Bank, Bharti Airtel, Axis Bank, SBI, Hindustan Unilever Limited, and L&T. Conversely, HCL Tech, Maruti Suzuki, Bajaj Finance, Asian Paints, Nestle India, ITC, and UltraTech Cement were among the biggest losers.
In the previous trading session on Friday, the Dow Jones in the US increased by 0.05 percent, closing at 40,113.50. The S&P 500 rose by 0.74 percent to 5,525.21, while the Nasdaq climbed 1.26 percent to 17,382.94.
In Asian markets (excluding China), cities like Jakarta, Bangkok, Seoul, Hong Kong, and Japan were trading in the green.
On the institutional side, foreign institutional investors (FIIs) continued their buying spree, marking their eighth consecutive session of inflows with an impressive Rs 2,952.33 crore recorded on April 25. Meanwhile, domestic institutional investors (DIIs) reversed a trend of net selling, turning net buyers with inflows of Rs 3,539.85 crore.
Point of View
The continued resilience of the Indian stock market amidst mixed global cues is commendable. The influx of buying from both foreign and domestic institutional investors reflects a growing confidence in the market's fundamentals. As we navigate these dynamic times, it's crucial for investors to remain informed and strategic in their approaches, ensuring alignment with market trends.
NationPress
23/05/2025
Frequently Asked Questions
What sectors are performing well in the Indian stock market today?
The PSU banks and financial services sectors are experiencing significant buying activity, contributing to the positive momentum in the market.
What levels should investors watch for Nifty today?
Investors should monitor the support level at 23,800 and the resistance level at 24,300 for potential trading opportunities.
What influenced the market's positive opening today?
The market opened higher due to favorable trends from the GIFT Nifty, which indicated a gap-up, along with continued institutional buying.
How did international markets perform in the previous session?
In the last trading session, the Dow Jones increased by 0.05%, while the S&P 500 and Nasdaq saw gains of 0.74% and 1.26%, respectively.
What is the significance of the Sensex's rise today?
The 400-point increase in the Sensex signifies strong market sentiment and a potential recovery following recent volatility.
