Weaker US jobs data, easing crude oil prices and hopes of softer interest rates lifted investor sentiment
Indian equity benchmarks opened sharply higher on Friday, with the Sensex climbing more than 500 points and the Nifty crossing the 24,300 mark, buoyed by improving global sentiment after weaker-than-expected US jobs data eased concerns over further interest rate hikes. Softer crude oil prices also added to investor optimism.
The BSE Sensex gained over 500 points in early trade, while the NSE Nifty moved past the 24,300 level, extending the positive momentum seen over the previous two trading sessions.
Market experts attributed the rally to a combination of favourable global and domestic factors. A slowdown in US job growth has strengthened expectations that the US Federal Reserve may adopt a less aggressive stance on interest rates, improving the outlook for emerging markets such as India. Lower crude oil prices, meanwhile, are viewed as supportive for the Indian economy, which depends heavily on oil imports.
Analysts noted that easing oil prices could help contain inflationary pressures and reduce India’s import bill, providing an additional boost to investor confidence.
Despite the positive start, foreign portfolio investors (FPIs) remained net sellers in the previous session, while domestic institutional investors (DIIs) continued their buying streak, helping support market sentiment.
Several heavyweight stocks remained in focus following quarterly business updates. Financial major Bajaj Finance reported healthy growth in new loans and assets under management, while Punjab National Bank, Avenue Supermarts and Marico also announced encouraging business performance for the June quarter.
Market participants will continue to track global economic data, crude oil prices, foreign fund flows and the upcoming corporate earnings season for further direction.
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