Indian Benchmark Indices Hit New Highs Amid Positive Global Cues
The Indian stock markets opened Friday’s trading session on a positive tone, with major equity indices reaching new highs. The BSE Sensex advanced 214.40 points, or 0.27%, to open at 79,457.58, while the NSE Nifty 50 gained 41.40 points, or 0.17%, to begin at 24,085.90.
Despite the robust start, wider indicators showed mixed results. The Bank Nifty index gained 63.65 points, or 0.12%, to 52,874.95.
“Indian benchmark indices, the Sensex and Nifty 50, are expected to open higher on Friday, boosted by bullish global market indications. The Gift Nifty is showing an initial premium, trading at around 24,200, up about 105 points from the previous closing of Nifty futures,” said Varun Aggarwal, MD of Profit Idea.
Sectoral indexes for the NSE had a strong start, with Nifty Bank, Financial Services, FMCG, IT, Media, Metal, Pharma, Realty, Healthcare, Oil and Gas, and Consumer Durables all trading in the green.
Institutional Activity
According to preliminary data available on the NSE, domestic institutional investors (DIIs) sold shares worth Rs 3,605.93 crore on June 1, 2024, while foreign institutional investors (FIIs) bought shares worth Rs 7,658.77 crore. This large buying activity by FIIs demonstrates strong international interest in the Indian market.
Previous Session Performance.
On Thursday, both indices set fresh closing highs, with the Sensex rising 568.93 points to 79,243.18, up 0.72%. Similarly, the Nifty 50 gained 175.70 points to close at 24,044.50, a 0.74% increase. The Nifty 50 has shown a bullish pattern, with four consecutive sessions of extended bull candles, including a ‘three advancing soldiers’ pattern earlier this week, signaling significant upward momentum.
“Market mood remained upbeat, supported by India’s upcoming inclusion in the J.P. Morgan GBI-EM Global Series indices on June 28. This move is projected to draw significant foreign inflows of USD 25-30 billion over the next 10 months, significantly raising India’s weightage in the index,” said Aggarwal.
Global Market Influences:
Internationally, WTI crude prices are trading at USD 82.00, up 0.23%, while Brent crude prices have fallen to USD 85.45, down 1.03%. The US Dollar Index (DXY), which measures the dollar against a basket of foreign currencies, is marginally lower at 105.89, down 0.15%.
In the United States, market indices closed neutral on Thursday, with cautious trade ahead of new inflation figures. The Nasdaq The Composite rose 0.30% to 17,858.68, while the S&P 500 and Dow Jones Industrial Average up 0.09% to 5,482.87 and 39,164.06, respectively.
Outlook
Overall, Indian markets are expected to perform well in the short future, assuming stable global economic circumstances and investor optimism. The good market trend is projected to continue, fueled by robust foreign investment and favorable global market signals.
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