Indian indices opened in green after ease in US inflation
Indian stock markets opened with gains on Thursday, following a global rally in stocks after U.S. inflation data showed moderation in August.
ANI
Sep 12, 2024 09:32 IST
New Delhi [India], September 12 (ANI): Indian stock markets opened with gains on Thursday, following a global rally in stocks after U.S. inflation data showed moderation in August.
The Nifty 50 index opened with a gain of 0.57 per cent or 141.20 points, at 25,059.65 points, while the BSE Sensex also surged 0.5 per cent or 407 points, to 81,930.18 points.
Global markets responded positively to the U.S. inflation data, as it increased the chances of Fed rate cuts on September 18th.
"Latest US inflation numbers are mildly positive for markets. August CPI inflation coming at 0.2 per cent has brought down the 12-month inflation to 2.5 per cent from 2.9 per cent earlier. This paves the way for a rate cut by the Fed in September. But since core inflation continues to remain high at 3.2% the Fed is likely to be cautious and refrain from a 50bp rate cut, finally settling for a 25bp rate cut" said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
He further added that "CPI inflation in India also is expected to be low at around 3.5 per cent in August. This can facilitate a rate cut by the MPC in 2024 itself. In brief, the benign inflation conditions and prospects for rate cuts are positives for stock markets".
On the National Stock Exchange, all broad market indices opened in the green, including the Nifty Next 50 and Nifty 100. Among sectoral indices, Nifty Metal and Nifty PSU Bank emerged as leaders, with gains of 1.29 per cent and 0.23 per cent, respectively.
However, shares of Tata Motors continued to face pressure, declining by around 0.5 per cent at the time of filing this report. Meanwhile, the Bajaj Housing Finance IPO received a record Rs 3.23 lakh crore in application money from 89 lakh investors.
Asian markets also opened strong on Thursday. Japan's Nikkei 225 index surged around 2.7 per cent with strong buying sentiment, while Taiwan's Taiwan Weighted index gained more than 3 per cent at the time of filing this report. South Korea's KOSPI and Hong Kong's Hang Seng also gained, following the rally in Asian stocks.
In the U.S., markets saw gains on Wednesday, with the S&P 500 and Nasdaq indices rising more than 1 per cent and 2.17 per cent, respectively, after U.S. inflation data showed annual inflation falling to 2.5 per cent in August. (ANI)
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