Markets – Indian equities rise at open tracking positive global signals
Markets – Indian benchmark indices started Thursday’s trading session on a firm footing, reflecting encouraging signals from international markets as investors responded to signs of easing geopolitical strain between the United States and Iran. The upbeat mood was visible across sectors in early deals, with buying interest spread broadly.
Strong opening driven by global optimism
At the opening bell, the Sensex advanced by 566 points, registering a gain of 0.73 per cent to reach 78,677. Meanwhile, the Nifty 50 moved higher by 154 points, or 0.64 per cent, beginning the day at 24,385. The positive start came in line with improved global cues, which lifted investor confidence.
Among sectoral indices, real estate, media, consumer durables, and financial stocks led the upward movement. These segments saw consistent buying activity, contributing significantly to the early rally.
Broader markets show notable strength
The broader market also participated in the upswing, with mid-cap and small-cap stocks outperforming the benchmarks. Indices such as the Nifty Smallcap 100, Nifty Smallcap 250, and Nifty Midcap 100 recorded gains of up to 1 per cent in initial trading.
This trend indicates sustained investor interest in relatively smaller companies, often viewed as growth-oriented opportunities during bullish phases.
Institutional flows remain mixed
On the institutional front, foreign institutional investors continued their buying trend in the previous session, investing approximately Rs 666 crore in equities. In contrast, domestic institutional investors booked profits, leading to net outflows of around Rs 569 crore.
Market participants are closely monitoring these flows, as they often influence short-term trends and liquidity conditions in the market.
Analysts caution about possible volatility
Despite the positive start, analysts have flagged the possibility of increased volatility in the coming sessions. They note that global developments, particularly geopolitical events and macroeconomic triggers, could quickly shift sentiment.
After a sharp rally in recent days, there is also a likelihood of consolidation or profit booking at elevated levels. Investors may adopt a cautious approach as markets hover near record highs.
Oil prices remain firm amid supply concerns
In the commodities segment, crude oil prices continued to trade at elevated levels. Brent crude futures hovered around $94.92 per barrel, showing a marginal decline of 0.03 per cent. On the other hand, US West Texas Intermediate crude edged higher by 0.25 per cent to $91.52 per barrel.
The firmness in oil prices reflects ongoing concerns about supply disruptions, particularly linked to tensions in key shipping routes.
Global markets provide positive cues
International markets offered strong support to domestic equities. Asian indices traded higher, with Japan’s Nikkei surging over 2 per cent. Hong Kong’s Hang Seng index gained more than 1 per cent, while South Korea’s KOSPI rose करीब 2 per cent in early trade.
In the United States, Wall Street closed on a positive note overnight. The S&P 500 ended with gains of 0.80 per cent, while the Nasdaq outperformed with a rise of 1.6 per cent, driven by strength in technology stocks.
Geopolitical developments influence sentiment
Geopolitical developments remain a key factor shaping market direction. The US President recently indicated that China supports the continued opening of the Strait of Hormuz, a critical route for global energy supplies. He also stated that assurances have been received regarding restrictions on arms supply to Iran.
However, the ongoing conflict has already disrupted global oil and gas flows significantly. The situation has constrained shipping through the strait, pushing crude oil prices close to $120 per barrel at one point, raising concerns about inflationary pressures worldwide.