In line with the trends on the SGX Nifty and improving sentiment on FIIs and crude fronts, the Indian market opened on a positive note on Thursday. The domestic market benchmark indices opened higher by more than half per cent. The broader Nifty50 zoomed past 16,000 to open at 16,113.75, while the Sensex gained more than 400 points to start at 54,146.68.
Following the benchmarks, Nifty midcap and small cap gained nearly one per cent in the opening trade.
On the sectoral front, all sectors sat comfortably in the green with Consumer Durables, Auto and Realty gaining the most.
“The sharp correction in crude, commodities like metals, and the declining trend in edible oil indicate that inflation will come under control soon. Taking cues from these indicators, the bulls have again turned buyers and the near-term structure of the market has turned clearly bullish now,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He said crash in commodities and RBI’s latest initiatives to increase foreign currency inflows have the potential to arrest further depreciation in rupee. “This means FIIs are unlikely to sell more. This is positive for markets,” said the market expert.
Leading indicators like demand for housing, autos particularly passenger and commercial vehicles, certain discretionary items like jewellery etc. reflect robust economic recovery in India, he added.
In the pre-open, the Sensex gained nearly 400 points as 29 stocks advanced and one declined on the 30-share index.
Earlier, SGX Nifty, hinting at another positive session for the market, had gained over 50 points in the morning trade on the Singaporean exchange on Thursday.
However, Hang Seng Index at the Hong Kong Exchange and Shanghai Composite traded lower by 1.7% and 0.52% respectively in early trade, while Japanese Nikkei 225 gained marginally by 0.2%.
Similarly, the US market ended in the green on Wednesday as US benchmarks Dow Jones, Nasdaq and S&P 500 gained 0.23%, 0.35% and 0.36% respectively.