Indian stock markets opened higher on Friday, buoyed by positive global cues and strong performance in the technology sector. The benchmark Sensex opened at 85,893.84, up from its previous close of 85,836.12, while the Nifty 50 index started the day at 26,248.25, building on Thursday’s close of 26,216.05.
IT stocks led the gains in early trading, with Infosys and LTIMindtree both surging 3.79 per cent, followed by Tech Mahindra (3.10 per cent), Wipro (2.73 per cent), and HCL Tech (2.20 per cent). The sector’s strong performance comes on the heels of Accenture’s positive quarterly results and upbeat forecast for FY25.
Deepak Jasani, Head of Retail Research at HDFC Securities, commented on the market outlook: “Nifty could now aim for 26,475 on the upside in the near term while the support has shifted up to the 25,956-26,033 band.”
However, some sectors faced selling pressure. Power Grid was the top loser, down 2.45 per cent, followed by L&T (-2.02 per cent), Bharti Airtel (-1.95 per cent), ONGC (-1.46 per cent), and Divi’s Lab (-0.85 per cent).
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The positive start aligns with the global market sentiment. U.S. stocks closed at record highs on Thursday, driven by strong economic data and optimism in the technology sector. Asian markets also extended gains, bolstered by China’s latest stimulus measures.
Vikas Jain, Head of Research at Reliance Securities, noted: “The rally is expected to persist, especially with the Nifty sustaining above the crucial psychological level of 26,000, combined with record-high global markets and strong FII inflows.”
Foreign Institutional Investors (FIIs) turned net buyers, purchasing equities worth ₹629.96 crore on September 26, while Domestic Institutional Investors bought shares worth ₹2,405 crore.
The market’s positive momentum is supported by several factors. Ameya Ranadive, Sr Technical Analyst at StoxBox, pointed out: “Global stock indexes hit record highs following Micron Technology’s optimistic forecast on chip demand for AI.”
In the commodities market, gold reached a new record high as investors anticipate the Federal Reserve’s future rate decisions. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, stated: “Gold prices scored another record high, while silver prices are also up a bit but well down from a nearly four-month high.”
Oil prices, however, continued their downward trend. Kalantri added: “Crude oil fell towards $67 per barrel as concerns over oversupply impacted the market.”
Looking ahead, market participants are awaiting the release of the U.S. core PCE price index, a key inflation indicator. Additionally, investors will be closely monitoring Federal Reserve Chair Jerome Powell’s upcoming speech for insights into future monetary policy.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, offered a technical perspective: “The market managed to hold above 26,100 levels which is positive and based on this we can see 26,500 levels in the near future. However, on an immediate basis, 26,300 would be the major resistance.”
As the market navigates through global economic developments and domestic factors, sectors such as metals, auto, sugar, NBFC, and PSU banks are likely to remain in focus. The ongoing festive season in India could also provide a boost to consumer-related stocks.
With the October series in F&O beginning today, and historical data showing a positive trend in this month for four out of the last five years, market participants remain cautiously optimistic about the near-term outlook.