Domestic markets open at record levels as optimism continues
The key Indian stock indices opened at new highs on Friday, extending their rally to eleven straight sessions. The 30-share BSE Sensex index rose over 100 points soon after the opening bell to breach the 82,400 level for the first time ever. The broader NSE Nifty 50 benchmark also gained momentum and crossed the 25,250 mark during early trade.
Both the benchmarks continued their northbound journey, supported by positive global cues and strong domestic institutional buying. Asian shares traded higher tracking overnight gains on Wall Street, after encouraging US economic data eased recession fears. Meanwhile, foreign investors have pulled out funds worth billions of dollars this month, but domestic institutions have stepped up with massive purchases worth double the net outflows.
The rally has been fueled by hopes of an interest rate cut by the US Federal Reserve later next month. Investors now await key US inflation data due on Friday for further confirmation. Back home, market participants are keeping an eye on India's Q1 GDP numbers scheduled for release today. Experts forecast a slight slowdown in growth rates for the quarter on account of disruptions from general elections.
All of the 13 sectoral indices compiled by the National Stock Exchange were in green territory, with metals, realty and auto stocks witnessing solid demand. Midcap and smallcap shares also rose around half a percent each. Airlines counters moved lower after aviation regulator DGCA imposed tighter surveillance on a low-cost carrier following certain post-audit deficiencies. Sugar producers saw buying interest as the government allowed new ethanol production norms.
Tracking over a dozen consecutive sessions of gains, the benchmark indices opened at record peaks on rising local institutional flows and global recovery hopes. A softer outcome to domestic GDP print and US inflation could extend the winning momentum in the coming sessions.
