Indian Markets Open Strong, Eye New Peaks
Indian equity benchmarks, the Nifty50 and the BSE Sensex, commenced Thursday's trading session on a positive note, extending gains from the previous day. The market sentiment remained upbeat, driven by a combination of strong domestic fundamentals and favourable global cues.
Benchmark Indices Show Steady Gains
At 9:18 AM, the Nifty50 was trading at 26,236.50, marking a gain of 31 points or 0.12%. Simultaneously, the BSE Sensex stood at 85,732.39, up by 123 points or 0.14%. This upward movement followed a significant 320-point rally in the Nifty on Wednesday, which analysts believe has firmly shifted the market into a bullish phase.
Analysts Bullish on Market Trajectory
Market experts are expressing strong confidence in the market's potential to scale new heights. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, stated that new all-time highs for the Nifty and Sensex are now only a matter of time. He highlighted several supporting factors, including a high FII short position, which is technically favourable for a continued rally.
More importantly, Dr. Vijayakumar emphasized that this rally has fundamental support from potential earnings growth expected in the third and fourth quarters of the 2026 financial year. The consumption boom witnessed in October is anticipated to translate into impressive corporate earnings. He noted that even with a slight moderation post the festival season, the underlying earnings growth appears strong enough to warrant a sustained market upswing, though he cautioned that sharp, sustained uptrends may be limited by current valuations.
Global Winds Fueling the Rally
The positive sentiment is not confined to Indian shores. US stocks advanced on Wednesday, powered by strength in the technology sector and a growing expectation of a December interest rate reduction by the US Federal Reserve. This optimism spilled over into Asian markets, which also traded higher.
Globally, investor sentiment has been buoyed by the expectation of a rate cut by the Fed and speculation around a potential Russia-Ukraine peace accord. On the commodities front, gold prices held steady after touching a one-week peak in the previous session.
Institutional Investors Show Confidence
Adding substantial weight to the rally was the action of institutional investors. Data showed that Foreign Portfolio Investors (FPIs) were net buyers, purchasing shares worth a substantial Rs 4,778 crore on Wednesday. Domestic Institutional Investors (DIIs) also exhibited strong buying interest, with net purchases amounting to Rs 6,248 crore. This robust inflow from both foreign and domestic institutions underscores the broad-based confidence in the Indian equity market.
In summary, with strong technicals, improving fundamentals, supportive global trends, and heavy institutional buying, the Indian stock market is poised for a potential record-breaking run.
