The Indian stock markets witnessed a strong surge on Friday, with both the Nifty 50 index and Sensex gaining more than 1 per cent. The rally was led by the Nifty IT and Nifty Realty sectors, which surged more than 2 per cent. Other major sectoral indices, including Nifty Auto and Nifty Media, also rose more than 1 per cent. The top gainers of the day in the Nifty 50 index included Wipro, LTIM, Tech Mahindra, Mahindra & Mahindra, and Apollo Hospitals.
Both benchmark indices, Nifty 50 and Sensex, gained at the opening session. The Nifty 50 index surged 0.79 per cent to open at 24,334.85 points, while the Sensex gained 0.82 per cent to open at 79,751.90 points. Markets globally have rebounded strongly from the August 5 sell-off, which was triggered by US recession fears and unwinding of Yen carry trades. The latest data on US inflation and unemployment does not point towards an imminent recession, easing concerns.
According to Ajay Bagga, a Banking and Market Expert, the strong global cues are supportive for the Indian markets. The three global risks that were looming have significantly reduced. Diplomacy has prevented an Iran attack on Israel, US CPI and PPI numbers indicate a deflationary trend, and lower unemployment benefit claims have improved the chances of a soft landing in the US economy. Despite the positive global cues, FPI selling has been a concern for India, with nearly USD 2.8 billion being withdrawn from the cash equities segment this month.
Bagga also mentioned that the Indian markets have been in a consolidation phase, with sideways movements, and may be gearing up for another attempt at all-time highs in the coming week. The positive momentum in the global markets, along with the recent easing of global risks, could provide further support to the Indian stock markets. Investors will be closely watching the market movements and upcoming developments to gauge the future direction and potential opportunities for investment.
Overall, the Indian stock markets have shown resilience and strength in the face of global uncertainties, with strong gains on Friday reflecting positive sentiment amongst investors. As the markets continue to navigate through various challenges, staying informed and adapting to changing dynamics will be crucial for investors to make well-informed decisions and capitalize on potential opportunities in the market.
