Indian stock markets opened on a strong note on Thursday, buoyed by positive global cues and investor optimism. The BSE Sensex surged by 431.35 points or 0.56 per cent, reaching 77,155.43 at the opening bell, while the Nifty50 gained 132 points or 0.57 per cent, trading at 23,345.20. This rally followed strong overnight performances in US markets, where Wall Street surged due to lower-than-expected inflation data, which raised hopes of at least two interest rate cuts by the Federal Reserve this year. Additionally, the strong earnings reports from major US banks such as JPMorgan and Goldman Sachs further boosted investor sentiment.
Asian markets followed the US rally, with most markets trading higher, contributing to the positive mood in India. Domestic investors are closely watching the earnings reports of major companies like Reliance Industries, Infosys, and Axis Bank, which are expected soon.
However, despite the positive global momentum, foreign investor activity remains a concern. As of January, foreign portfolio investors (FPIs) have sold shares worth Rs 30,307 crore, with Rs 4,534 crore sold just on Wednesday. This selling activity has put some pressure on the Indian market, causing the Sensex and Nifty to decline by 1.8 per cent on a year-to-date basis.
Market experts anticipate continued volatility in the Indian financial markets in the first half of 2025, driven by both global and domestic factors. These include uncertainty regarding US interest rate cuts, a strengthening dollar, rising bond yields, and policies under the Trump administration. The upcoming Union Budget is also expected to play a pivotal role in shaping market sentiment in the coming months.
