Domestic equity benchmarks Sensex and Nifty opened higher on Friday, extending their winning streak on the back of positive global cues and expectations of a US Federal Reserve rate cut at its September 16-17 meeting.
Consumer prices in the US climbed 2.9 per cent in August from a year earlier, up from 2.7 per cent in July, marking the sharpest annual rise since January, US Labor Department data showed on Thursday. Core inflation held steady at 3.1 per cent.
At 9:18 am, the BSE Sensex was up 203.50 points, or 0.25 per cent, at 81,752.23 after rising as much as 287 points in early trade. The NSE Nifty50 extended its winning streak to an eighth straight session, adding 69.90 points, or 0.28 per cent, to 25,075.40, after touching an intraday high of 25,089.75.
Among Sensex stocks, Infosys led gainers, rising 1.82 per cent to Rs 1,537. TCS shares were up 0.67 per cent. Other gainers included Maruti Suzuki (up 0.70 per cent), Axis Bank (up 0.65 per cent) and HCL Tech (up 0.62 per cent).
Shares of Infosys jumped 1.82 per cent to Rs 1,537 in early trade on Friday after the IT major announced its largest-ever share buyback post-market hours on Thursday. The company said it will repurchase 10 crore shares at a price of Rs 1,800 apiece, representing a 19 per cent premium to Thursday’s closing price. The total outlay for the buyback stands at Rs 18,000 crore.
In overnight trade, the S&P 500 climbed 0.85 per cent to end at 6,587.47, while the Nasdaq advanced 0.72 per cent to 22,043.07. The Dow Jones Industrial Average outperformed, jumping 1.36 per cent to close at 46,108.
Earlier on Friday, Asian markets traded higher, with Japan’s Nikkei 225 advancing 0.73 per cent to 44,694.65 and South Korea’s KOSPI climbing 1.09 per cent to 3,380.50. Hong Kong’s Hang Seng Index also added 1.30 per cent to 26,424.75.
On Thursday, the Sensex rose 123.58 points, or 0.15 per cent, to 81,548.73, while the Nifty50 added 32.40 points, or 0.13 per cent, to close at 25,005.50.
Amruta Shinde, a technical & derivative analyst at Choice Equity Broking Private Limited, said Indian benchmark indices are likely to open on a positive note today, with the GIFT Nifty indicating an uptick of nearly 80 points in the Nifty 50. “Market sentiment remains cautiously optimistic, although persistent volatility and mixed global cues continue to weigh on investor confidence,” he said.
“The Nifty index formed a bullish candle and held above the 25,000 mark, signalling strength following renewed optimism around U.S.-India trade talks and expectations of GST rate cuts, which lifted investor sentiment. However, for further upside, the index needs to surpass the 25,160-25,400 range. On the downside, immediate support is seen at 24,800, aligning with the 20-day EMAs,” Shinde said.