Indian stock market benchmarks Sensex and Nifty 50 are positioned for a positive opening on Thursday, riding the wave of optimistic global market trends and increasing expectations of interest rate cuts from the US Federal Reserve.
Strong Recovery Sets Stage for Further Gains
The domestic equity markets witnessed a robust recovery during Wednesday's trading session, with both major indices closing significantly higher. The Sensex surged by 1,022.50 points, representing a 1.21% increase, to settle at 85,609.51. Meanwhile, the Nifty 50 climbed 320.50 points, gaining 1.24%, to close at 26,205.30, comfortably crossing the 26,200 mark.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, highlighted the favorable market conditions. "The market backdrop remains favourable, driven by a healthier Q3 demand setup and expectations of capex pick up along with potential RBI and US Fed rate cut, which could help market cross its all time high," he stated.
Global Markets Fuel Optimism
Asian markets displayed strong performance on Thursday, mirroring the overnight rally on Wall Street. Japan's Nikkei 225 index jumped 1.42%, while the Topix gained 0.64%. South Korean markets also showed strength with Kospi surging 1.05% and Kosdaq rising 0.39%. Hong Kong's Hang Seng Index added 0.12%, though mainland China's CSI 300 remained relatively flat.
The positive sentiment extended to Indian market indicators, with Gift Nifty trading around 26,430 level, indicating a premium of nearly 49 points from the Nifty futures' previous close. This typically signals a positive opening for Indian stock market indices.
Wall Street Rally and Economic Indicators
US stock markets extended their gains on Wednesday, primarily driven by technology stocks amid growing probability of a December interest rate reduction from the US Federal Reserve. The Dow Jones Industrial Average advanced 314.67 points (0.67%) to 47,427.12, while S&P 500 rallied 46.73 points (0.69%) to 6,812.61. The tech-heavy Nasdaq Composite outperformed, climbing 189.10 points (0.82%) to 23,214.69.
Several major technology companies contributed to this upward movement. Nvidia shares gained 1.37%, while AMD shares rallied 3.93%. Microsoft shares rose 1.76%, Dell Technologies stock price jumped 5.8%, and Tesla stock price added 1.71%.
Economic Developments and Policy Decisions
In significant economic developments, China's industrial profits showed growth, increasing by 1.9% in the first ten months compared to the same period last year. This follows a 3.2% increase recorded in the January-September period, according to data from the National Bureau of Statistics.
The International Monetary Fund provided positive projections for India's economic growth, estimating 6.6% expansion in FY26. The IMF noted that GST reforms are likely to help cushion the country from adverse impacts of 50% tariffs imposed by the US. "India's economy has continued to perform well. Following the economic growth of 6.5% in FY25, real GDP expanded by 7.8% in the first quarter of FY26," the IMF report stated.
In domestic policy developments, the Union Cabinet approved a ₹7,280 crore scheme aimed at promoting manufacturing of rare earth permanent magnets (REPM). Union Minister Ashwini Vaishnaw announced that incentives under this scheme would enable India to achieve self-reliance in rare earth magnet manufacturing within the next three to four years.
Commodity Market Movements
Gold prices maintained stability after reaching a more than one-week high in the previous session. Spot gold price held steady at $4,162.98 per ounce, while US gold futures for December delivery experienced a minor decline of 0.1% to $4,158.60 per ounce.
Crude oil prices witnessed a decline amid expectations of a Ukraine-Russia ceasefire. Brent crude futures fell 0.3% to $62.92 a barrel, while US West Texas Intermediate crude futures declined 0.4% to $58.44 a barrel.
The combination of strong domestic recovery, positive global cues, and optimistic economic projections creates a favorable environment for Indian equities as trading resumes on Thursday.
