Nifty and Sensex opened on a positive note, with analysts forecasting a potential new all-time high in the coming week
Mumbai (Maharashtra), August 22 : Indian stock markets surged during Thursday's opening session after a flat performance the previous day.
Both the Nifty 50 and Sensex indices opened higher, signaling renewed investor optimism. The Nifty 50 index rose by 93.20 points, or 0.38 percent, reaching 24,863.40 points, while the BSE Sensex gained 301.94 points, or 0.37 percent, climbing to 81,207.24 points.
Market experts are optimistic about the potential for Indian markets to reach a new all-time high next week. This optimism is largely driven by the release of the US Federal Reserve's minutes, which have heightened expectations of possible interest rate cuts in September.
"We have a good chance of crossing the all-time high levels in Indian markets during the next week. Soft crude oil prices are another tailwind for the Indian economy. Reducing geopolitical tensions are helping lower the geopolitical risk premium embedded in crude oil pricing. Dovish comments from the July FOMC meeting have increased the probability of a US Fed rate cut at the September 18th meeting. US markets reacted positively to that, and Asian markets are continuing the momentum," said Ajay Bagga, Banking and Market Expert.
In the broader market, the Nifty Micro Cap 250 index led the gains with an increase of over 0.79 percent, while other indices like Nifty Midcap, Nifty 100, and Nifty Next 50 also posted gains.
However, in sectoral indices, only Nifty Pharma, Nifty Auto, and Nifty Realty opened lower, while all other sectoral indices recorded gains at the start of the trading day.
"Markets opened with a positive bias. Banking stocks are under some pressure, but the Nifty and Sensex are positive. Paytm and Zomato stocks are in focus. Investors need to trade cautiously in Mid and small-caps as rich valuations are under scrutiny," said Shriram Subramanian, founder and MD of InGovern Research Services.
In global markets, US indices closed higher on Wednesday, supported by dovish comments in the Fed's July FOMC minutes. The S&P 500 rose 0.42 percent to 5,620.85, the Nasdaq Composite increased 0.57 percent to 17,918.99, and the Dow Jones added 0.14 percent to 40,890.49.
The US Dollar Index edged up 0.09 percent to 101.21. Crude oil prices were slightly lower, with WTI at USD 71.83 and Brent at USD 76.01.
Asian markets showed mixed performance, with Japan's Nikkei 225 rising 1.02 percent to 38,340.21, while the Shanghai Composite fell 0.01 percent to 2,856.2.
FII outflows amounted to Rs 799.74 crore, while DII inflows were Rs 3,097.45 crore on August 21, 2024.