Nifty, Sensex continue gains on Thursday opening, investors to track Powell speech, Ukraine talks

MUMBAI: The positive momentum in Indian equities continued on Thursday morning as key benchmark indices opened higher, though investors remained cautious amid global uncertainties. The Nifty 50 index opened at 25,089.65, gaining 37.90 points, or 0.15 per cent, while the BSE Sensex started the session at 82,082.98, higher by 225.14 points, or 0.28 per cent.

Market participants are keeping a close watch on the ongoing Russia-Ukraine peace process, as well as upcoming global and domestic developments. The early trade reflected steady optimism, although movements in global markets are adding an element of caution.

Ajay Bagga, banking and market expert, said that domestic markets have “lots to cheer” with expectations of GST cut announcements soon. “We expect a self-reliance focus on India to lead to speedy deregulation. US Tech weakness on AI qualms, Ukraine glide path looking more complex than Trump portrayals and the Jackson Hole speech by Fed Chair Jerome Powell are the key market moving developments. Expect markets to watch Powell’s speech for clues to the US monetary policy. Japanese and Chinese bond yields are rising. This signals tighter markets globally and a Fed QE may be needed by the end of the year to manage US Treasury yields”, he said.

In the broader market, the performance was mixed. The Nifty 100 index traded almost flat with a gain of 0.04 per cent, while the Nifty Midcap 100 was down by 0.09 per cent. The Nifty Smallcap 100, however, showed strength and gained 0.27 per cent in the opening session.

Among the sectoral indices on the NSE, Nifty Auto slipped 0.08 per cent, Nifty FMCG lost 0.58 per cent, Nifty IT declined 0.48 per cent, and Nifty Media dropped 0.62 per cent. On the other hand, Nifty Metal and PSU Bank indices were trading in the green with marginal gains.

Vikram Kasat, Head, Advisory, PL Capital, said that Nifty had closed yesterday near the upper end of the gap zone at 25,046. “Breaking and sustaining above 25,046 can push the Nifty higher towards 25,250 levels which is a make-or-break zone from a medium-term perspective,” he noted.

On global trends, Kasat pointed out that US markets are on a three-day losing streak as investors show fatigue following a sharp 30 per cent rally since April. “We’re seeing a notable drop in leadership, with large-cap growth significantly lagging small caps and value this month. Still, the S&P 500 Index sits just 1 per cent below record highs, and volatility and credit spreads remain calm, suggesting investors’ fears are modest”, he added.

In Asia, the performance was mixed at the time of filing this report. Japan’s Nikkei 225 was down by 0.62 per cent and Hong Kong’s Hang Seng index slipped 0.31 per cent. Singapore’s Straits Times inched up 0.15 per cent, Taiwan’s Weighted Index surged over 1 per cent, while South Korea’s KOSPI rose 0.75 per cent. (ANI)