Nifty, Sensex open higher on FII inflows and DII buying; experts cautious amid global risks, hawkish Fed outlook

MUMBAI: The share markets in the country opened on a positive note on Thursday, supported by foreign inflows and continued buying interest from domestic investors. The Nifty 50 index opened at 25,873.35 with a gain of 54 points, or 0.21 per cent, while the BSE Sensex opened at 83,969.82 with a gain of 235.57 points or 0.28 per cent.

Market experts noted that positive global cues and sustained domestic buying are helping the markets move higher, though global risks remain.

Ajay Bagga, a banking and market expert, said, “Riding off positive FII flows and continued DII buying, Indian markets are once more seeking to break through key resistance levels. However, the extremely overbought positioning and the global risk from a US-Israel military action on Iran keeps us cautious about the outlook in the next few days. Asian currencies are lower today in the face of a stronger US dollar. Oil prices spiked up on Wednesday as the US VP Vance’s comments on Iran were seen as pointing to an imminent US action in the Middle East”.

In the commodity market, gold prices surged again after a sharp decline on Wednesday and are currently trading at Rs 155687 per 10 gm for 24 karat. Silver prices also recovered to Rs 242520 per kg after a steep fall on Wednesday.

In the broader markets, indices on the National Stock Exchange (NSE) were trading in the green. The Nifty 100 index was up by 0.10 per cent, while the Nifty Smallcap 100 gained 0.24 per cent and the Nifty Midcap 100 rose by 0.13 per cent.

Among sectoral indices on the NSE, Nifty Auto gained 0.27 per cent, Nifty IT surged 1.22 per cent, Nifty Metal rose by 0.65 per cent, Nifty Pharma gained 0.08 per cent, and Nifty PSU Bank was up by 0.35 per cent. However, Nifty FMCG, Nifty Media, and Nifty Realty were trading lower.

Meanwhile, there will be no settlement-related activities due to a clearing holiday on account of Chhatrapati Shivaji Maharaj Jayanti. All transactions in both cash and futures and options (F&O) on February 18 and February 19 on the NSE and the BSE will be settled and reflected in the demat accounts of investors and traders on February 20.

In the FIIs and DIIs flows on Wednesday, domestic investors made a net investment of Rs 440 crore while foreign net investment surged to Rs 1154 crores.

Globally, US markets ended positively on Wednesday, while Asian markets were largely trading in the green on Thursday morning. However, markets in China, Hong Kong, and Taiwan remain shut for the Lunar New Year holiday.

Japan’s Nikkei 225 index surged by 0.89 per cent to the 57644 level. Singapore’s Straits Times index also rose by more than 1 per cent to 4990, while South Korea’s KOSPI gained 2.5 per cent to 56644.

The Federal Reserve’s latest FOMC meeting minutes were seen as hawkish, with members in favour of holding rates and even open to a rate hike if inflation rises. US bond yields were higher as expectations of rate cuts reduced. (ANI)