MUMBAI : Nifty, Sensex opened strong on Friday following a global market surge after the US Federal Reserve’s decision to cut interest rates.
The Nifty 50 index opened at 25,525.95 points, gaining 110.15 points or 0.43 per cent, while the Sensex opened at 83,603.04 points, up by 418.24 points or 0.50 per cent.
The experts pointed out that the FIIs have changed their positions in Indian markets following the concerns of Indian stocks being overvalued, however, the strong support by domestic investors continues in Indian markets.
“US markets bounced back strongly, to make the 39th all-time high on the S&P 500 for the year. Asian markets are largely positive as well. India saw a surprise negative number for FII flows on Wednesday. Most foreign brokerages are pointing to India’s valuations as a tactical issue, with MSCI India Index at 24 times one year forward PE. Domestic flows continue to be strong, but the FII selling if it continues, will make it tough for the Indian markets to rally sustainably” said Ajay Bagga, Banking and Market Expert.
Among the sectoral indices on the NSE, Nifty Metal led the gains in the opening session with a rise of 0.96 per cent. Other sectoral indices, including Nifty Bank, Nifty FMCG, and Nifty Auto, also posted gains.
The top gainers in early trading included Tata Steel, JSW Steel, and Mahindra & Mahindra, while the top losers were Tata Motors, LTIM, and Dr Reddy’s shares.
The Asian markets also followed the rally sparked by the Fed rate cut. Japan’s Nikkei 225 surged more than 2 per cent, Hong Kong’s Hang Seng gained 1.65 per cent, and South Korea’s KOSPI index was up by 0.78 per cent at the time of filing this report.
In the US markets on Thursday, stocks jumped, with the Dow Jones Industrial Average and S&P 500 hitting new all-time highs. Investors responded positively to the Federal Reserve’s decision to lower interest rates by half a percentage point on Wednesday. (ANI)