Nifty, Sensex open higher on Friday amid global central bank action and Bank of Japan rate hike

MUMBAI: The domestic equity markets opened with gains on Friday, tracking positive cues from Asian markets after the Bank of Japan (BoJ) raised interest rates to the highest level in 30 years.

The BoJ increased its policy rate by 25 basis points to 0.75 per cent, marking a major shift in Japan’s long-standing ultra-loose monetary policy stance.

At the opening bell, the Nifty 50 index opened at 25,911.50, gaining 95.95 points or 0.37 per cent, while the BSE Sensex opened at 84,756.79, up 274.98 points or 0.33 per cent.

Market experts said global cues, especially central bank decisions across major economies, were influencing sentiment.

Ajay Bagga, Banking and market Expert, said”Indian markets skirted key support levels and held steady on Thursday, but gave up the day’s gains by the end of the day. The markets remain fragile, with a lack of both conviction and catalysts. There is limited fiscal space with the government as tax revenues remain well below budgeted numbers. The nominal GDP growth rate of 8.7 per cent in Q2, FY2026 is lagging the budgeted nominal GDP of 10 per cent. Hence at best, we see range bound markets for the rest of the year. The GST impact on consumption has peaked and now got normalised. The Rupee thankfully has recovered some ground and held its levels”.

In the broader markets on the NSE, gains were seen across segments. The Nifty 100 rose by 0.44 per cent, Nifty Midcap 100 advanced 0.40 per cent, while the Nifty Smallcap 100 gained 0.43 per cent at the time of filing this report.

Sectorally, Nifty Pharma surged by over 1 per cent, emerging as the top gainer in early trade. Nifty Auto rose 0.55 per cent, Nifty FMCG traded marginally higher, while Nifty PSU Bank gained 0.39 per cent.

Globally, it was an eventful period for central banks. The Bank of England cut rates, the European Central Bank held rates steady, while Mexico and Thailand cut interest rates. Norway and Sweden maintained their policy rates unchanged, highlighting divergent policy paths across economies.

Asian markets traded higher on Friday morning after the BoJ’s rate hike pushed Japanese interest rates to a three-decade high of 0.75 per cent.

Overnight, US markets snapped a four-day losing streak and rallied sharply after November CPI and Core CPI data came in well below estimates.
Overall, global central bank actions and easing inflation data from the US provided support to equities, even as domestic markets remain cautious amid fiscal and growth concerns. (ANI)