Indian equity markets started the day on a strong note as benchmark indices opened in the green, supported by gains in heavyweight stocks such as Reliance Industries and Bharti Airtel. The BSE Sensex initially surged 363 points to reach 74,393 before witnessing some profit booking, settling around 74,135, still maintaining a gain of over 150 points. Meanwhile, the NSE Nifty 50 remained above the crucial 22,500 level, signaling positive momentum in the market.
Among the top gainers in early trade were Mahindra & Mahindra, Zomato, Bharti Airtel, Power Grid Corporation, Adani Ports, and Tata Steel. These stocks contributed to the overall positive sentiment in the market as investors focused on key economic indicators and corporate earnings reports.
From a technical perspective, analysts noted that Nifty was trading just below a significant resistance level of 22,500. According to Dhupesh Dhameja, Derivatives Analyst at SAMCO Securities, a decisive breakout above 22,550 could lead to a strong short-covering rally, potentially driving the index further upward.
Global cues played a crucial role in influencing domestic market sentiment. In the US, major indices exhibited a mixed performance overnight. The NASDAQ and S&P 500 surged up to 1.2% as investors bought into beaten-down technology stocks, reflecting renewed optimism. However, the Dow Jones Industrial Average ended the session 0.2% lower after experiencing volatility throughout the day. A softer Consumer Price Index (CPI) inflation report in the US helped ease concerns about aggressive Federal Reserve rate hikes, boosting overall market confidence.
Asian markets presented a mixed trend, with some indices posting gains while others struggled. Japan’s Nikkei led the region with a 0.8% rise, supported by gains in major export-driven companies. South Korea’s KOSPI and Taiwan’s benchmark index also saw gains of 1% and 0.5%, respectively, as investors reacted to global economic data and corporate earnings. However, markets in Australia, Hong Kong, Singapore, and China remained under pressure, with the ASX 200, Hang Seng, Straits Times, and Shanghai Composite each slipping by around 0.2%.
Back in India, investors remained watchful of key market trends, with attention on upcoming economic data and corporate earnings reports. While the overall sentiment remained positive, market experts advised caution, given the ongoing fluctuations in global markets and the possibility of resistance levels capping further gains in the indices.
