Mumbai (Maharashtra) [India], September 10 (ANI): Indian stock markets continued their upward momentum on Wednesday, supported by positive global cues and the ongoing exchange of optimistic posts on social media between Prime Minister Narendra Modi and U.S. President Donald Trump.
The benchmark indices opened with strong gains. The Nifty 50 index started the day at 24,991, up by 122.40 points or 0.49 per cent. Similarly, the BSE Sensex opened at 81,504.36, registering an increase of 403.04 points or 0.50 per cent.
Experts noted that while the positive developments on the trade deal front are encouraging, the markets are still struggling with high valuations. Sustained earnings growth will be critical to support a stable rally.
Ajay Bagga, Banking and Market Expert, told ANI, “Positive post on a trade deal with India by President Trump improves Indian futures a bit in morning trades. Indian markets will need earnings strength to make a sustainable move past the Sep 2024 record close. Trump’s post is a positive, a follow through of a trade deal will be a very positive catalyst for Indian markets, but earnings rising to justify the lofty valuations is the essential catalyst.”
He further added, “Indian markets have spent nearly 12 months with no returns and the turn is imminent. But to make it a stable move, incipient earnings recovery is an essential factor. June may have been the earnings trough and we may be on the cusp of an earnings recovery setting in.”
In the broader market, indices on the NSE also opened higher. The Nifty 100 index gained 0.47 per cent, the Nifty Midcap 100 rose 0.81 per cent, and the Nifty Small Cap 100 surged 0.70 per cent.
Among sectoral indices, the Nifty Auto index edged up 0.09 per cent, while the Nifty IT index jumped more than 1 per cent. The Nifty Metal index and Nifty Pharma index gained 0.42 per cent each.
Banking stocks also saw strong momentum, with the Nifty PSU Bank index surging 0.74 per cent and the Nifty Private Bank index rising by 0.74 per cent.
Motilal Oswal, in its market outlook, stated that optimism surrounding potential progress in U.S.-India trade negotiations is supporting the market. It stated, “U.S. President’s indication of a favourable trade deal with India has boosted investor sentiment. In addition, Foreign Institutional Investors (FIIs) turned net buyers with inflows exceeding Rs 2,000 crore on Tuesday, further strengthening the outlook.”
Global markets also contributed to the upbeat sentiment. Hopes that the U.S. Federal Reserve may cut interest rates in its upcoming policy meeting to counter slowing job growth have driven rallies across markets.
In other Asian markets, Japan’s Nikkei 225 index rose 0.57 per cent, Hong Kong’s Hang Seng index surged by more than 1.18 per cent, Taiwan’s weighted index climbed 1.45 per cent, South Korea’s KOSPI index advanced 1.52 per cent, and Singapore’s Straits Times gained 0.98 per cent. (ANI)
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