Post by : Raman

The Indian stock markets continued their upward journey on Thursday as domestic investors remained optimistic ahead of crucial US inflation data and the upcoming Federal Reserve policy announcement scheduled for September 16–17. Both benchmark indices, Sensex and Nifty50, ended the session with modest gains, extending the market’s winning streak and reflecting investor confidence in domestic economic resilience.

At the closing bell, the BSE Sensex rose by 123.58 points, or 0.15 per cent, settling at 81,548.73. The Nifty50 similarly gained 32.40 points, or 0.13 per cent, reaching 25,005.50, marking its seventh consecutive session of positive performance. Analysts attributed this positive trend to a combination of domestic factors, including strong corporate earnings, sectoral performance, and improving investor sentiment regarding India-US trade relations.

Among individual stocks, NTPC emerged as the top gainer on the Sensex, climbing 1.63 per cent to Rs 330.90. Axis Bank followed closely with a 1.61 per cent increase, while Eternal Energy, Power Grid, Bharti Airtel, and Sun Pharma also contributed to the upward movement, reflecting gains across multiple sectors. Notably, Bharti Airtel, Axis Bank, Reliance Industries, Eternal Energy, and State Bank of India were the key contributors pushing the Sensex higher.

Sectoral indices showed robust performance, with the BSE Oil & Gas index advancing 1.19 per cent to 26,241.72 and the BSE Energy index gaining 0.96 per cent to close at 11,271.04. Overall, out of 4,281 active stocks traded on the BSE, 2,119 ended with gains, while 2,009 settled lower and 153 remained unchanged. The session also witnessed 113 stocks hitting their 52-week highs and 42 stocks reaching 52-week lows. Additionally, 232 stocks were locked at their respective upper circuits, while 162 touched lower circuits, indicating strong market participation and volatility.

Two notable stocks in the BSE 200 index, Indian Bank and Waaree Energies, reached their respective 52-week highs, reflecting investor optimism in select banking and renewable energy sectors.

Vinod Nair, Head of Research at Geojit Investments Limited, highlighted the significance of Nifty50 surpassing the 25,000 mark. “The unexpected imposition of a 50 per cent tariff on India by the US initially dragged the main index down to 24,400,” he explained. “However, the index has been steadily recovering from this decline due to the limited expected impact on the domestic economy, India’s strong strategic response, and significant domestic reforms, such as GST adjustments, mitigating trade-related repercussions.”

Nair further pointed out that positive signals from the US regarding renewed trade discussions with India have reinforced investor confidence. “These developments have allowed the market to move into a new trading range, which was anticipated by many analysts,” he said.

Investors are now keeping a close watch on the US inflation data, which is expected to influence the Federal Reserve’s upcoming policy decisions. Analysts believe that the US inflation report could impact global capital flows and, by extension, domestic market sentiment.

The Indian stock market’s resilience amid global uncertainties underscores the robustness of domestic economic fundamentals. Strong corporate earnings, coupled with positive government reforms and improving trade relations, continue to support investor confidence, making India an attractive destination for both domestic and foreign investors.

As markets await external cues, including the US inflation data and Federal Reserve policy announcements, domestic equities appear well-positioned to maintain their upward trajectory, provided no unexpected global shocks disrupt investor sentiment.

The market’s current momentum reflects a combination of strategic domestic policymaking, strong sectoral performance, and anticipation of constructive international developments. Analysts recommend investors to monitor both domestic and global factors carefully while maintaining a diversified investment approach in the current market scenario.

The Indian equity market has demonstrated strength and resilience by extending its winning streak, with Sensex and Nifty50 leading gains across key sectors. Investors are encouraged to stay informed about domestic economic reforms, trade negotiations, and upcoming US financial announcements, as these will play a crucial role in shaping market trends in the weeks ahead.

Indian stock market, Sensex, Nifty, US inflation, Federal Reserve, market update, stock gains, NTPC