New Delhi: The Indian stock markets commenced the session on Friday with a robust rally, as investors returned to both the Nifty and Sensex indices.
The Nifty 50 index experienced a gain of 1.12 percent, or 269.85 points, opening at 19,386.85 points. Concurrently, the BSE Sensex saw a surge of over 1,000 points, opening at 65,984.24 after a significant increase of 1,098.02 points, or 1.69 percent.
"The Asian markets have opened with a stronger momentum. The Indian markets have witnessed over Rs 20,000 crores of Foreign Portfolio Investment (FPI) outflows in the cash equities segment up to August. The Federal Futures indicate a 70 percent probability of a 50 basis point (bps) rate cut by the Federal Reserve on September 18th. Meanwhile, the Reserve Bank of India has maintained its stance on monetary policy," stated Ajay Bagga, a Banking and Market Expert to ANI.
He further elaborated, "On Thursday, the rebound in the U.S. markets was widespread, with numerous tech and momentum stocks that had previously suffered significant losses leading the recovery. An analysis from a leading international firm suggests that approximately 75 percent of the global carry trade has been reversed in recent market turbulence. As the selling subsides, there is a resurgence of positive momentum in the markets."
In the broader market context, both the Nifty Next 50 and Nifty 100 indices recorded gains exceeding 1 percent during the early trading hours of Friday. Altogether, other broad market indices also exhibited gains in the initial session.
Regarding corporate news, several entities, including Bharat Dynamics, Aarti Industries, Berger Paints, and Sun TV Networks, are slated to announce their quarterly financial results on Friday.
On a global front, there is a sense of optimism, with U.S. stocks experiencing a surge on Thursday following reports of better-than-expected jobless claims. The Nasdaq Composite advanced by 2.87 percent, the S&P 500 rose by 2.30 percent, and the Dow Jones increased by 1.76 percent.
In the Asian markets, there was a mixed bag of performances, with Japan's Nikkei 225 climbing by 1.97 percent and South Korea's KOSPI rising by 1.48 percent. Hong Kong's Hang Seng index also saw a significant increase of 1.93 percent.
Conversely, on Thursday, the domestic indices saw a decline following the Reserve Bank of India's (RBI) announcement of its monetary policy. The Sensex fell by 581.79 points to 78,886.22, while the Nifty 50 closed 180.50 points lower, or 0.74 percent, at 24,117.00.
