Sensex and Nifty Surge in Early Trade on U.S. Market Rally and Foreign Fund Inflows
In a promising start to the trading week, the Indian stock market saw significant gains as both the BSE Sensex and NSE Nifty surged in early trade on August 26, 2024. The Sensex jumped 312.33 points to reach 81,398.54, while the Nifty rallied 94.15 points to hit 24,917.30. This upbeat momentum can be attributed to a combination of positive cues from U.S. markets and robust foreign fund inflows.
Positive Global Cues
The optimism in the Indian markets follows a strong rally in U.S. stock markets, where investors reacted positively to comments made by Federal Reserve Chair Jerome Powell during the Jackson Hole Symposium. Powell hinted at a potential loosening of monetary policy and possible rate cuts in September, which has reignited investor confidence globally.Market strategist V.K. Vijayakumar from Geojit Financial Services noted, "The Fed chief's clear message about the beginning of the rate-cutting cycle will bolster the ongoing global rally in stock markets." This sentiment has resonated well with investors, leading to increased buying activity in Indian equities.
Foreign Institutional Investors (FIIs) Boosting Markets
The surge in the Indian markets is further supported by substantial foreign institutional investments. On Friday alone, FIIs purchased equities worth approximately ₹1,944.48 crore, signaling strong interest in Indian stocks. This influx of capital has been a crucial factor in driving the market rally, as foreign investors continue to see value in the Indian economy.Top Performers
Among the top gainers in the Sensex, major players included Tech Mahindra, Tata Consultancy Services, Tata Motors, Power Grid, HDFC Bank, and Bajaj Finance. These companies have shown resilience and growth potential, contributing significantly to the overall market uplift.However, not all stocks performed well. Companies like ITC, Sun Pharma, UltraTech Cement, and Adani Ports lagged behind, reflecting the mixed performance across sectors.Market Outlook
As the trading day progresses, market participants will be keenly watching for further developments, both domestically and internationally. The ongoing global economic landscape will play a significant role in shaping market sentiment. With Brent crude oil prices also on the rise, currently at $79.50 per barrel, traders are keeping an eye on how this might affect inflation and consumer spending in India.Conclusion
The early surge in the Sensex and Nifty is a positive sign for investors, reflecting a strong start to the week driven by favorable global cues and robust foreign fund inflows. As the market continues to react to both domestic and international developments, investors remain hopeful for sustained growth in the coming sessions. With the backdrop of potential policy changes from the U.S. Federal Reserve, the Indian stock market is poised for an exciting journey ahead.from Stock Market Today: Sensex, Nifty, BSE, NSE Latest Updates | The Hindu https://ift.tt/5we6Khj
