Indian Stock Markets Surge: Renewed Investor Optimism Boosts Indices

Indian stock markets surged on Thursday as Nifty 50 and Sensex opened higher, driven by investor optimism and potential US Fed rate cuts. Market experts predict all-time high levels soon, with reduced geopolitical tensions and softening crude oil prices aiding the rally.

On Thursday, Indian stock markets experienced a notable surge during the opening session, a stark contrast to their flat performance the previous day. Investor optimism was evident as both the Nifty 50 and Sensex indices opened higher. The Nifty 50 index increased by 93.20 points, or 0.38 percent, reaching 24,863.40 points. Concurrently, the BSE Sensex added 301.94 points, or 0.37 percent, bringing it to 81,207.24 points.

Experts are bullish about Indian markets potentially hitting new all-time highs in the upcoming week. This sentiment is fueled by the latest US Federal Reserve minutes, which have heightened expectations of interest rate cuts in September. According to Ajay Bagga, Banking and Market Expert, 'We have a good chance of crossing the all-time high levels on the Indian markets during the next week. Soft crude oil prices and reducing geopolitical tensions are aiding the economy. The dovish FOMC comments have increased the probability of a US Fed rate cut at the Sep 18th meeting. As a result, US markets reacted positively, and Asian markets are continuing the momentum.'

In broader markets, the Nifty Micro Cap 250 index led the gains with an over 0.79 percent rise. Other indices such as the Nifty Midcap, Nifty 100, and Nifty Next 50 also showed gains. However, among sectoral indices, Nifty Pharma, Nifty Auto, and Nifty Realty opened lower, with all other sectors recording gains initially. 'Markets demonstrate a positive bias. Banking stocks face some pressure, but Nifty and Sensex are positive. Paytm and Zomato stocks are in focus, but investors need to exercise caution with Mid and small-caps due to rich valuations,' stated Shriram Subramanian, founder and MD of InGovern Research Services.

Meanwhile, global markets reflected positive sentiments from dovish comments in the Fed's July FOMC minutes. The S&P 500 rose 0.42 percent to 5,620.85, the Nasdaq Composite increased 0.57 percent to 17,918.99, and the Dow Jones added 0.14 percent to 40,890.49.

The US Dollar Index saw a minor uptick of 0.09 percent at 101.21, while crude oil prices slightly declined with WTI at USD 71.83 and Brent at USD 76.01. Asian markets had mixed results: Japan's Nikkei 225 climbed 1.02 percent to 38,340.21, while the Shanghai Composite dipped slightly by 0.01 percent to 2,856.2.

Foreign Institutional Investors (FII) outflows reached Rs 799.74 crore, whereas Domestic Institutional Investors (DII) recorded inflows of Rs 3,097.45 crore on August 21, 2024. (ANI)

(With inputs from agencies.)