Indian stock markets opened bly on Friday. The Sensex opened with a gain of around 250 points, while the Nifty surged above 24,850. Investor sentiment remained robust due to easing geopolitical tensions, a decline in crude oil prices, and stability in China's monetary policy. Mid-cap and small-cap stocks also witnessed significant gains.
Positive Market Opening
The Indian stock market saw a b opening today. The BSE Sensex opened at 81,602, up 240 points, while the NSE Nifty traded at 24,860, up 67 points.
This surge was driven by several key international indicators. The US stated it would keep channels of communication open regarding the escalating tensions between Israel and Iran and would decide on further support for Israel within the next two weeks. This led to a slight easing of global tensions, which positively impacted the markets.
China's central bank (PBoC) also maintained its key lending rates unchanged. This signaled that China is continuing its economic reforms at a steady pace.
Gainers and Losers
Several prominent companies witnessed significant gains in today's trading. These included M&M, Bajaj Finserv, SBI, UltraTech Cement, Maruti Suzuki, Bharti Airtel, and Nestle India.
Conversely, stocks like IndusInd Bank, Bajaj Finance, Tech Mahindra, Kotak Bank, and Power Grid showed weakness.
Investor interest remained high in mid-cap and small-cap stocks. The Nifty Midcap and Smallcap indices saw gains of approximately 0.5%. Furthermore, the 'India VIX,' an indicator of market volatility, fell by over 3%, suggesting reduced investor fear.
On the sectoral front, the Nifty PSU Bank index surged by 1%. The realty, financial services, metal, and IT sectors also saw modest gains.
Mixed Global Market Trends
GIFT Nifty futures were trading at approximately 24,792 around 7:30 AM, indicating a slight decline of 11 points.
Asian markets displayed a mixed trend. China kept its one-year and five-year loan prime rates unchanged at 3% and 3.5%, respectively. Japan's core inflation rate for May rose to 3.7%, exceeding expectations. However, the overall inflation rate remained at 3.5%, the lowest in six months. Japan's Nikkei index climbed 0.27%, while the Topix showed minimal change.
South Korea's Kospi closed slightly down, while Australia's ASX 200 fell by 0.37%.
Geopolitical Situation and Economic Indicators
The US clarified that it is considering military support for Israel, with a final decision expected within two weeks. This indicates a potential de-escalation of tensions. Former US President Donald Trump also voiced support for Israel's actions.
The US stock market was closed on Thursday for the 'Juneteenth' holiday. However, US stock futures showed a slight dip due to concerns over the Middle East situation.
The Bank of England held its interest rate steady at 4.25%. This decision, reached by a 6-3 majority in the June meeting, was attributed to persistent inflation and global uncertainty.
