The Sensex opened higher at 76,900.14 compared to its previous close of 76,499.63 and is currently trading at 76,667.90, up by 168.27 points or 0.22 per cent. Similarly, the Nifty opened at 23,250.45, above its previous close of 23,176.05, and is now at 23,203.75, gaining 27.70 points or 0.12 per cent. driven by positive global market sentiment ahead of crucial US inflation data.
Auto major Maruti Suzuki led the gainers pack, surging 2.87 per cent, followed by power giant NTPC (+2.77 per cent) and Adani Ports (+2.09 per cent). State-owned BPCL and private lender Kotak Bank advanced 1.52 per cent and 1.33 per cent respectively. On the flipside, financial services firms Bajaj Finserv and Shriram Finance were the top losers, declining 2.29 per cent and 2.05 per cent respectively.
“Market is expected to open on a positive note, driven by a rally in global markets ahead of the release of US CPI data today, as well as a decline in the US 10-year bond yield,” said Vikas Jain, Head of Research at Reliance Securities. The lower-than-expected US producer price index has increased expectations of a Federal Reserve rate cut.
Foreign institutional investors (FIIs) continued their selling spree, offloading equities worth ₹8,132 crore on January 14, while domestic institutional investors bought shares worth ₹7,901 crore. “FIIs’ ongoing sell-off, amounting to ₹34,382.60 crore in January, is capping bullish expectations,” noted Prashanth Tapse, Senior VP at Mehta Equities.
The metal and PSU Bank indices showed strength, rallying over 3 per cent each, while the IT index emerged as the biggest sectoral loser, shedding nearly 2 per cent. Small and mid-cap stocks witnessed buying interest, with both sectors rising over 2 per cent.
“Small-cap PSU banks could see positive movement following news that the government may allow stake sales in five state-run banks,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. The banks under consideration include UCO Bank, Central Bank of India, Indian Overseas Bank, Bank of Maharashtra, and Punjab and Sind Bank.
In commodities, gold gained 0.5 per cent to $2,675/ounce ahead of the US inflation report, while Brent crude hovered around $80/barrel as markets assessed the impact of US sanctions on Russian oil flows.
Technical analysts suggest a cautious approach. “The intraday market texture is non-directional, with 23,260 being a key level to watch,” said Shrikant Chouhan of Kotak Securities. A break above could push the index to 23,350-23,400, while a fall below 23,130 might trigger selling pressure.
Looking ahead, market participants await Q3 corporate earnings, including results from HDFC Life, Oracle Finance, and L&T Tech scheduled for release today. The upcoming Union Budget and RBI policy meeting next month are also expected to influence market sentiment.
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Published on January 15, 2025
https://www.thehindubusinessline.com/markets/markets-open-higher-on-global-cues-auto-and-psu-banks-lead-gains/article69099301.ece
