Stock Market Today: Nifty50 Nears 25,600; BSE Sensex Opens Over 100 Points Higher
Nifty50 nears 25,600 as BSE Sensex opens 100+ points higher, boosted by strong FII buying, weak dollar, and positive global cues.
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Friday's opening of the Indian equity markets was bullish due to encouraging global cues. The BSE Sensex increased by more than 100 points in early trading, while the Nifty50 index remained close to the 25,600 level.
The Nifty50 was up 47 points (0.18%) at 25,596 at 9:17 AM, while the Sensex was up 131 points (0.16%) at 83,887. Due to favourable international conditions and solid local economic data, market analysts believe that the Nifty may soon test its prior all-time highs.
"The market has successfully negotiated a number of obstacles since the March 2020 COVID-19 pandemic, including high inflation, aggressive global monetary tightening, geopolitical tensions, and tariff uncertainties," said VK Vijayakumar, Chief Investment Strategist at Geojit Investments. The surge seems unlikely to be derailed by the impending tariff deadline on July 9th, especially because reports point to a potential extension, which is good news for markets.
The persistent weakness of the US dollar, which has caused the dollar index to fall to about 97, is a significant element supporting the market. As a result, there was a significant increase in net purchases by foreign institutional investors (FIIs) on Thursday, totalling Rs 12,594 crore. This resulted in notable increases for large-cap companies including HDFC Bank, ICICI Bank, Bharti Airtel, Reliance Industries, and Bajaj Finance, which raised benchmark indices.
Thursday saw the US markets closing higher as well, with the Nasdaq and S&P 500 trading close to all-time highs. As the ceasefire between Israel and Iran continues to progress, investor morale has improved. Additionally, economic data indicates that the Federal Reserve may lower interest rates later this year.
Despite worries over Middle East supply lessening as a result of the truce, oil prices jumped little on Friday due to increasing demand for fuel for the US summer driving season.
On Thursday, domestic institutional investors (DIIs) sold shares valued at Rs 195 crore, while FIIs continued to be net buyers. On Wednesday, FII net short positions in futures markets decreased sharply from Rs 1.06 lakh crore to Rs 34,967 crore.
Although there may be some short-term profit booking, overall market momentum is still solid.
