Indian stock markets opened on a positive note Thursday, with the Sensex starting at 82,469.79 and the Nifty at 25,250.50, buoyed by favourable global cues and falling crude oil prices. The GIFT Nifty futures indicated a gain of 100 points, trading at 25,360 in early hours.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, commented, “Markets are likely to be on firm ground in early Thursday trades on positive Asian cues and a buoyant Gift Nifty index, while crude oil prices tumbling below $70 a barrel should cheer local investors.”
The decline in oil prices to a 14-month low of $73 per barrel is expected to benefit various sectors. Vikas Jain, Head of Research at Reliance Securities, noted, “Expect positive [movement] on Cement stocks. Rally may continue on Pharma, Defense, IT and oil marketing stocks.”
Also read: Stocks that will see action today: September 5, 2024
As of 9.30 am, major gainers on the NSE included Ultratech Cement (1.64 per cent), Shriram Finance (1.40 per cent), Tata Steel (0.87 per cent), Titan (0.78 per cent), and ITC (0.76 per cent). Top losers were HDFC Life (-0.78 per cent), Britannia (-0.63 per cent), Nestle India (-0.63 per cent), SBI Life (-0.51 per cent), and Bharti Airtel (-0.50 per cent).
Foreign Institutional Investors (FIIs) continued their buying streak for the fifth consecutive session, purchasing equities worth ₹975 crore on September 4. This ongoing FII interest has been a key factor supporting the market’s upward trajectory.
The Services PMI data for August reached a 5-month high, indicating robust domestic economic growth. Jain added, “The Services PMI data, which is above the 60 level, indicates strong growth in the domestic economy.”
Global markets presented a mixed picture ahead of the upcoming US nonfarm payroll report. Avdhut Bagkar, Technical and Derivatives Analyst at StoxBox, stated, “Investors are closely watching the upcoming US nonfarm payroll report for further clues on interest rate decisions.”
The US markets ended Wednesday’s session on a mixed note, with lower-than-expected July job openings fueling hopes for a September rate cut. This sentiment was reflected in the falling US 10-Year Bond Yield, which dropped to a one-year low of 3.74 per cent.
In stock-specific news, TARC will be in focus as it received a registration certificate for its luxury project, TARC ISHVA, in Gurugram from the Haryana RERA. Additionally, the Reliance board is set to consider a bonus share issue, and GIC-RE is launching a QIP at ₹395 for the retail segment.
Hardik Matalia, Derivative Analyst at Choice Broking, provided technical insights: “After a gap up opening, Nifty can find support at 25,150 followed by 25,050 and 25,000. On the higher side, 25,350 can be an immediate resistance, followed by 25,400 and 25,500.”
As the market navigates through global economic signals and domestic corporate actions, investors remain watchful of the evolving trends in key sectors and upcoming economic data releases.
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Published on September 5, 2024
https://www.thehindubusinessline.com/markets/stock-markets/markets-open-higher-on-positive-global-cues-lower-oil-prices/article68608160.ece
