Indian equity markets advanced in the midday session on Thursday, buoyed by positive global cues and easing geopolitical tensions. The benchmark indices remained in the green, with the BSE Sensex climbing 337.20 points, or 0.44 per cent, to 77,061.28 and the NSE Nifty rising 107.00 points, or 0.46 per cent, to 23,320.20 as of 1:29 PM.

Global cues and geopolitical relief drive gains

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A strong overnight rally in US stocks set the tone for Asian markets, following data that indicated a smaller-than-expected rise in US core CPI inflation. This development, along with a decline in US bond yields and a softer dollar index, raised investor optimism globally. Additionally, geopolitical tensions eased after the Gaza ceasefire deal between Israel and Hamas, further bolstering sentiment.

Key gainers in the Indian market

Among the top performers on the Sensex, Adani Ports surged 3.21 per cent to Rs 1,164.35, leading the pack. IndusInd Bank followed with a gain of 2.56 per cent, trading at Rs 986.55. Other notable gainers included Zomato, State Bank of India, UltraTech Cement, Tata Motors, and NTPC, which all advanced between 1 to 2 per cent.

HDFC Life saw a sharp rise of 10.37 per cent to Rs 656.90 after analysts revised its target price upward, despite a slowdown in individual premium growth. L&T Technology Services also posted an impressive 8 per cent gain, trading at Rs 5,248.10, on robust deal momentum expectations for 2025.

Sectoral highlights and heavyweight stocks

Reliance Industries inched up 0.16 per cent to Rs 1,254.35, ahead of its quarterly results due later today. Analysts anticipate strong growth in its telecom segment, though energy and retail performance might remain subdued. Meanwhile, Infosys traded 0.11 per cent higher at Rs 1,952, with expectations of a potential FY25 revenue guidance upgrade.

Investor outlook

Market participants are optimistic about a sustained rally, supported by easing foreign portfolio investor (FPI) outflows and anticipation of robust quarterly results from heavyweights like Reliance Industries, Infosys, and Axis Bank. However, analysts caution that domestic macroeconomic indicators, particularly GDP and earnings growth, will be critical in determining the longevity of this rally.

Vinod Nair, Head of Research of Geojit Financial Services highlights, 'benchmark indices continued to trade in the positive, albeit off highs, driven by positive investor sentiment following mild US inflation data, which raised hopes for a potential rate cut by the Federal Reserve. Additionally, favourable developments in the Israel-Hamas ceasefire and a reduced trade deficit further boosted the market's upward movement. However, weak economic growth data from the UK dampened some of this optimism. Despite higher valuations compared to leading indices, the broader market saw bargain buying during the recent correction."

Looking ahead

Investors will closely monitor the outcome of today’s earnings announcements, as well as global market trends. The easing of geopolitical risks and the possibility of further Fed rate cuts could provide additional tailwinds for the market in the near term.