In Short:
Indian equity markets opened higher on Thursday, with the Nifty 50 reaching a record of 26,005.40, driven by positive global trends and optimism about China’s stimulus measures. The Sensex was at 85,167.56. Key gainers included Maruti and SBI Life, while Hero Motocorp faced losses. Market sentiment remains strong amid mixed global economic signals, with investors eyeing upcoming U.S. economic updates.
Indian Markets Soar as Nifty 50 Hits New Heights
In an exciting start to Thursday, **Indian equity markets** opened on a high note, with the **Nifty 50 index** reaching a remarkable record. Buoyed by positive global cues and rising optimism regarding **China’s stimulus measures**, both the **Sensex** and **Nifty** recorded impressive gains right from the opening bell, reflecting a promising sentiment in the air.
Market Highlights
By 9:30 AM, the **Sensex** was sitting pretty at 85,167.56, while the **Nifty 50** opened strong at 26,005.40, happily surpassing its previous record close. This uplifting trend can be attributed to a robust performance in **Asian markets** and a positive outlook from **US stock futures**.
Expert Insights
**Deepak Jasani**, Head of Retail Research at **HDFC Securities**, shared his thoughts on the current market dynamics: “Asian equities rallied on Thursday as technology stocks showed fresh signs of vitality across the board. The Nifty 50 staged a remarkable recovery from earlier lows, ultimately marking a record close for the fourth consecutive session.”
The Winners & Losers
In early trade on the **NSE**, top gainers included:
- Maruti (+1.70%)
- SBI Life (+1.40%)
- Nestle India (+1.20%)
- LTIMindtree (+1.17%)
- Wipro (+1.13%)
Conversely, the market had its share of declines with major losers like:
- Hero Motocorp (-2.32%)
- ONGC (-1.36%)
- Power Grid (-0.85%)
- Hindalco (-0.78%)
- NTPC (-0.69%)
Sector Performance Overview
When it comes to sectors, a mixed bag of results emerged. The **IT, auto, and banking sectors** showcased a great deal of strength, while the **metal and power sectors** experienced some selling pressure. Notably, the media index surged over 3% in the previous session, signaling sustained investor interest.
Looking Ahead
**Prashanth Tapse**, Senior VP (Research) at **Mehta Equities Ltd**, weighed in on the sentiment: “The strong undertow from Asian markets suggests that we could see domestic benchmarks logging early gains. Key indices are hovering above their record levels, driven primarily by a liquidity-induced rally. However, as we approach today’s **F&O expiry**, expect a bit of intra-day turbulence as investors settle their positions.”
Global Influences
The encouraging mood in the Indian market is further supported by the performance of global equities. **Asian stocks** are enjoying an upward trend, thanks to increasing optimism surrounding **China’s aggressive stimulus efforts**. Moreover, **US stock futures** have also been trending higher, particularly led by robust performances from technology stocks, accentuated by solid earnings from **Micron Technology**.
Technical Perspectives
From a technical standpoint, **Ameya Ranadive**, Sr Technical Analyst at **StoxBox**, pointed out that “Immediate support is observed near **25,790**. Maintaining a closing level above this level could solidify a bullish momentum for the index.”
Economic Signals
It’s important to note that these movements occur within a context of mixed global economic signals. While **US new home sales** have dipped, there’s been a surge in mortgage applications, the highest seen since 2022, mainly driven by homeowners looking to refinance given the drop in interest rates.
What’s on the Radar?
Investors remain vigilant, keeping an eye on pivotal forthcoming events that could sway market sentiment—including a much-anticipated speech by **Federal Reserve Chair Jerome Powell**, the release of the **PCE price index** (the Fed’s favorite way of measuring inflation), **US Q2 GDP data**, and the latest **jobless claims figures**.
**Vikas Jain**, Head of Research at **Reliance Securities**, encapsulated the significance of these developments: “Today’s spotlight will shine on the **US Fed Chair’s speech**, along with the crucial **GDP and jobless claims data**.”
Institutional Activity
In terms of institutional investor activity, **Foreign Institutional Investors (FIIs)** sold equities worth ₹973 crore on September 25, while **Domestic Institutional Investors (DIIs)** countered by purchasing shares worth ₹1,778 crore, indicating differing trends in sentiment.
Anticipating Volatility
As the market nears the end of the month’s **futures & options (F&O) expiry**, excitement is palpable but with the anticipation of increased volatility. **Hardik Matalia**, a derivatives analyst at **Choice Broking**, advised traders holding long positions to maintain them, while setting a trailing stop loss at **25,750** on a closing basis.
Final Thoughts
With the **Nifty** smashing through the **26,000** barrier and achieving new heights, market participants are bracing themselves to monitor essential resistance and support levels closely. The ongoing rally in global tech stocks, especially those in the semiconductor sector, is expected to cast a positive light on domestic **IT stocks**.
As the day progresses, all eyes will be on potential developments in global markets, economic data releases, and sector-specific news that could influence trading sentiment and the overall direction of the market.
