New Delhi [India], December 26 (ANI): The stock market commenced trading today after the Christmas holiday, experiencing initial fluctuations before gaining positive momentum and entering the green territory.
The benchmark indices, Sensex and Nifty, both opened with gains, reflecting a positive sentiment among investors.
The Sensex opened 1.12 points higher at 71,112.85, and the Nifty saw an opening gain of 18.70 points at 21,368.10. The initial market movements indicate optimism among market participants after the festive break.
Among the Nifty firms, there were 38 advances and 12 declines, showcasing a predominantly positive market breadth. Notable gainers in the early trading session included Hero Motocorp, NTPC, Tata Steel, Tata Consumer Products, and UPL.
On the flip side, Infosys, Wipro, HCL Technologies, Tech Mahindra, and Maruti were among the top losers.
While the NSE Nifty 50 opened with marginal gains, the GIFT Nifty traded at 21,418.50, indicating an opening above the previous close of Nifty at 21,349.40.
Positive trends in some Asian markets have contributed to the buoyant opening.
The past seven weeks have witnessed a substantial surge in both NSE Nifty and BSE Sensex, recording gains of 12.65 per cent and 12.07 per cent, respectively.
Factors contributing to this rally include robust domestic macroeconomic indicators, renewed foreign investments, and a decline in oil prices.
Varun Aggarwal, founder and managing director, Profit idea, said, “Two pivotal factors have catalysed the market rally. Firstly, India’s GDP growth for Q2 at 7.6 per cent, surpassing expectations, prompted the RBI to raise FY24 growth estimates by 50 bps to 7.0 per cent. This positive economic outlook was a driving force behind the stock rally. Additionally, the US Federal Reserve adopting a dovish stance, signalling potential rate cuts in 2024 and 2025, has bolstered market sentiment globally. Speculation even suggests a possibility of rate cuts by the Reserve Bank of India in the future”.
Additionally, the dovish stance adopted by the US Federal Reserve, hinting at potential rate cuts in 2024 and 2025, has bolstered global market sentiment.
Aggarwal added, “Looking ahead, two significant events will shape the market narrative. The Red Sea situation, where Houthi rebels’ actions affect oil shipment routes, and updates on the JN.1 variant of the COVID virus will be closely monitored. The OPEC membership crisis, notably with Angola exiting, may impact oil prices, with Nigeria, Gabon, and Algeria contemplating their OPEC status, potentially influencing ties with China”.
“Amidst tepid Foreign Portfolio Investor (FPI) flows, attention shifts to Friday’s release of Current Account Deficit (CAD) data for Q2. The quarter is expected to remain subdued, balancing a robust services surplus against a trade deficit. However, concerns persist about the CAD surpassing 2 per cent this year”, said Aggarwal.
The ongoing OPEC membership crisis, with Angola exiting and others contemplating their status, adds an element of uncertainty.
Despite tepid Foreign Portfolio Investor (FPI) flows, attention is now focused on Friday’s release of Current Account Deficit (CAD) data for Q2.
The market will also await crucial data releases, including core sector growth and fiscal deficit updates, along with several IPOs scheduled for the week.
Investors are poised to keenly observe these events for potential market impacts as the stock market resumes full activity post the festive break. (ANI)
