Indian Markets Poised for Upswing Amid Global Support

The Indian stock markets opened flat on Thursday despite supportive global cues following the US Federal Reserve's dovish policy tone. While initial gains moderated before opening, experts remain optimistic about Indian equities, forecasting a robust year-end driven by positive domestic and international signals.

On Thursday, Indian stock markets experienced a subdued opening even as global conditions improved following the US Federal Reserve's rate cut and dovish policy stance. Experts, however, maintain a positive outlook for Indian equities, predicting an upswing toward year-end.

The Nifty 50 index began trading at 25,791.50, inching up by 33.50 points or 0.13%, while the BSE Sensex launched at 84,488.22, marking a 96.95 point or 0.11% rise. Market analyst Ajay Bagga noted stronger gains in Indian market futures post-Fed announcement but observed moderation as markets opened. He emphasized the strength of domestic markets due to positive cues from both the RBI and the US Fed.

Despite low expectations from the current US Trade negotiation delegation's visit, Bagga anticipates a rebound in earnings during the December quarter, fueled by increased consumption post-GST cuts in September. He pointed out that heavy FPI selling and large primary market offerings are currently redirecting liquidity away from secondary markets, affecting sentiment despite positive factors.

Broader market indices were also in the green. The Nifty 100 rose by 0.08%, Nifty Midcap 100 gained 0.34%, and Nifty Smallcap 100 climbed 0.14%. Most sectoral indices traded higher, except Nifty FMCG and Media, with notable increases in Nifty Auto (0.25%), Nifty IT (0.48%), and Nifty PSU Bank (0.61%).

Globally, sentiment lifted after the Fed's decision to cut rates and introduce asset purchases totaling USD 40 billion, along with easing bond yields and a weaker US dollar. Deepak Agrawal, CIO of Debt at Kotak Mutual Fund, highlighted the US policy outcome as offering minimal surprises, noting the significant development in balance-sheet expansion despite limited changes in forward guidance.

With bolstered global cues and enhanced domestic sentiment, analysts forecast a positive market trend through the end of the year. (ANI)

(With inputs from agencies.)