Indian stock markets continue their upward movement as the selling pressure reduces and foreign investors buy into Indian markets.
The Nifty 50 index opened at 24,539.15 points with a gain of 71.70 points or 0.29 per cent, while the BSE Sensex opened at 81,182.74 points with a gain of 226.41 points or 0.28 per cent.
Experts noted that with the MPC meeting underway in Mumbai, the markets are closely watching it. However, rate cut expectations are very low. If the RBI changes its stance amid a weakening economy, the markets will likely react to it.
Ajay Bagga, Banking and Market Expert told ANI that “This RBI MPC has to address the issue of a resurgent inflation along with a slowing economy. By holding real interest rates high for a long period of time, RBI has reduced aggregate demand, but given that monetary policy is a more blunt instrument with system wide impact, we are seeing urban demand cooling more than anticipated. In sync with lower government expenditure due to the 4 lost months from mid-March to end July, this has led to a slowing economy”.
In the Nifty 50 list, 23 stocks opened with gains, while 26 stocks declined, and 1 remained unchanged at the time of filing this report.
In the sectoral indices on NSE, Nifty FMCG, Nifty IT, Nifty Consumer Durables, and Nifty Oil & Gas gained, while other indices declined at the time of filing this report. Foreign investors bought equities worth Rs 1,797 crore on Thursday.
“In a shot-in-the-arm for bulls, a key Ichimoku signal has turned positive, and with 24550 breaking during yesterday’s session, the onus is now on the market to hold short-term support in the 24240 – 24300 area and make a dash toward 24800. Below 24240, this view will have to be relooked at” said Akshay Chinchalkar, Head of Research, Axis Securities.
In other Asian markets, Japan’s Nikkei 225 index gained 0.54 per cent, Taiwan’s Weighted index was also up by 0.36 per cent, while Hong Kong’s Hang Seng index declined by 1.14 per cent. South Korea’s KOSPI index was almost flat at the time of filing this report.
In the US markets, both indices continued their upward movement, with the S&P 500 gaining 0.61 per cent, while the Nasdaq index was up by 1.29 per cent.