Indian benchmark equity indices, BSE Sensex and Nifty50, showed positive movement on Thursday, reflecting global optimism. As of 2 PM, the Sensex was up by 339.19 points (0.44%) at 77,063.27, while the Nifty50 rose by 118.05 points (0.51%) to 23,331.25. IndusInd Bank, Tata Motors, and UltraTech Cement were the leading gainers on the Sensex, while IT and FMCG stocks, including HCLTech and Hindustan Unilever, experienced losses.
The PSU Bank index emerged as the top gainer, climbing 2.74%, followed by a 1.72% rise in the Realty index. On the downside, the FMCG index was the biggest loser, down 0.93%, followed by the Consumer Durables and IT indices.
The rally was driven by positive global sentiment, as U.S. markets surged after inflation data raised hopes of Federal Reserve interest rate cuts. Wall Street's robust earnings reports from JPMorgan and Goldman Sachs added to the optimism. However, foreign investors remained cautious, with FPIs having sold shares worth Rs 30,307 crore in January, which has led to some pressure on Indian markets.
Investors are also anticipating the December quarter earnings from key companies like Reliance Industries, Infosys, and Axis Bank. Additionally, market volatility is expected to continue in the first half of 2025 due to both domestic and global uncertainties. Meanwhile, the Indian rupee strengthened after hitting fresh lows, and the RBI announced daily variable rate repo auctions to ease liquidity pressures.
Overall, while the market is showing resilience, caution remains as FPIs continue to offload shares and domestic concerns about corporate earnings and economic policies persist.
