Indian stock markets saw a surge in early trade on Thursday, led by gains in blue-chip bank stocks, supported by positive Asian market trends and RBI's optimistic economic outlook.
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Indian equity benchmarks Sensex and Nifty surged in early trade on Thursday, propelled by a rally in blue-chip banking stocks and a positive trend across Asian markets. The 30-share BSE benchmark Sensex saw a sharp rise, jumping 425.5 points to reach 78,898.37, while the NSE Nifty gained 123.85 points, standing at 23,851.50.
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As per PTI reports, the rally was led by prominent banking stocks, with heavyweights such as State Bank of India, Axis Bank, ICICI Bank, and HDFC Bank among the major gainers. Other stocks from different sectors like Maruti, Mahindra & Mahindra, and Power Grid also witnessed positive momentum. These blue-chip stocks were seen to be the key drivers behind the early surge in the markets.
On the other hand, a few stocks from other sectors struggled during the early session. As per PTI, Asian Paints, Tech Mahindra, Nestle, and Tata Consultancy Services were among the laggards, weighing on broader market sentiment.
Asian markets were also trading in positive territory, contributing to the upbeat mood on Indian bourses. Key indices in Seoul, Tokyo, and Shanghai posted gains, which further boosted investor confidence in the Indian markets. However, the US markets were closed on Wednesday due to the Christmas holiday, which limited global cues for the day’s trading session.
In line with the market surge, global oil prices also edged up. The global oil benchmark, Brent crude, increased by 0.41 per cent to USD 73.88 a barrel, which is being closely watched by investors due to its potential impact on inflation and energy costs.
As per PTI, the Indian economy is showing signs of recovery from the slowdown witnessed in the September quarter. The recovery is attributed to strong festival activity and sustained rural demand, according to a recent bulletin released by the Reserve Bank of India (RBI). The central bank’s positive outlook on the economic rebound is believed to have given a further boost to market sentiment.
Despite the positive early trends, foreign institutional investors (FIIs) offloaded equities worth Rs 2,454.21 crore on Tuesday, according to exchange data. The Indian stock markets had remained closed on Wednesday due to the Christmas holiday, which left investors eagerly awaiting today’s session to gauge market direction.
In the previous session, the BSE index had declined by 67.30 points or 0.09 per cent, closing at 78,472.87, while the Nifty dipped 25.80 points, or 0.11 per cent, to end at 23,727.65. However, today’s strong early performance shows a reversal of the losses seen earlier this week, signalling positive investor sentiment in the markets.
The outlook for Indian equities remains optimistic, with experts anticipating continued strength driven by domestic demand and improving global sentiment.
(With inputs from PTI)
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