Sensex, Nifty open higher for 4th straight session as global cues aid momentum

India Today

3 days ago

Benchmark equity indices opened higher on Friday, extending gains for the fourth consecutive session, buoyed by sustained foreign fund inflows and firm global cues. Optimism over potential rate cuts by the US Federal Reserve and a drop in crude oil prices following a ceasefire announcement in West Asia added to the positive sentiment.The BSE Sensex opened with a gain of over 140 points and was trading 89.06 points higher at 83,844.93 around 9:22 am. The NSE Nifty50 breached the 25,600-mark at the open before paring some gains to trade 25.35 points up at 25,574.35.advertisementPrashanth Tapse, Senior VP (Research) at Mehta Equities, noted that markets may build on Thursday's strong rally as investors respond to dovish signals from the US Federal Reserve. "Firm global cues coupled with growing expectations that the Fed may cut interest rates sooner than anticipated could emerge as the biggest positive catalyst," he said.
Tapse also highlighted the impact of falling oil prices, with crude staying depressed at $65.50 per barrel after the West Asia ceasefire news. He pointed to the Reserve Bank of India's latest bulletin, which indicated India's economic resilience, as another source of investor confidence. 'We suspect the Nifty IT index could catch investors' attention on dovish bets from the Fed,' he added, predicting that Nifty's ongoing rally may target the all-time high of 26,277.35, unless it falls below the 25,300 mark.advertisementDr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out a major development in the currency market that is adding momentum to the rally. 'The dollar index's decline to around 97 has triggered a surge in foreign institutional investor (FII) inflows, with net investments totalling 12,594 crore yesterday—an unusually large figure, even factoring in bulk deals.'According to Vijayakumar, this wave of FII buying lifted heavyweight stocks like HDFC Bank, ICICI Bank, Bharti Airtel, Reliance Industries, and Bajaj Finance, contributing significantly to the rally. 'The ongoing bull market has climbed multiple walls of worry—be it high inflation, rate hikes, or geopolitical tensions—and appears unlikely to be derailed even by the upcoming July 9 tariff deadline,' he said, noting that expectations of a deadline extension are also supporting market sentiment.However, he cautioned that some profit booking may occur in the near term, given the rapid run-up in indices.- Ends