Indian Stock Indices Close in Green Amid Strong US Cues

Indian stock markets closed on a positive note, bolstered by strong cues from the US markets. Sensex gained 378.18 points to settle at 80,802.86, while Nifty rose 100.80 points to close at 24,673.45. Banking sector led the gains. US market signals and crude oil prices influenced investor sentiment.

Indian stock indices ended Tuesday's session in the green, driven by robust overnight cues from US markets. Sensex gained 378.18 points to close at 80,802.86, marking a 0.47% increase. Nifty also saw a rise, settling at 24,673.45 points, up by 100.80 points or 0.41%. Among the sectoral indices, banking led the gains.

Analysts noted that US markets have now seen an eight-day rally, recovering over USD 3 trillion in market cap from August lows. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the consistent gains in the US market are sending positive signals, potentially sustaining the global rally.

Markets are eagerly awaiting Fed Chief Powell's comments at the Jackson Hole symposium this Friday. Analysts predict a 25 bp rate cut by the Fed in September, with two more cuts likely this year, which could further bolster global equity markets, including India. The recent dip in Brent crude prices below USD 78 bodes well for India, particularly for companies using crude as an input. However, despite attractive valuations, large-cap financials may remain under pressure due to continued foreign institutional investor (FII) selling.

Investors will monitor Powell's speech for hints on the central bank's monetary policy and potential interest rate adjustments. The Indian rupee strengthened slightly, trading at 83.78 against the dollar, bolstered by a dip in the dollar index and stable international crude prices.