Key domestic Benchmark equity indices -Sensex and Nifty -traded higher in early trade on Friday, breaking two days of losing momentum.
The rebound was attributed to buying in blue-chip IT stocks and firm global cues. Last seen, the 30-share BSE index Sensex climbed 245.56 points to 77,191.80 in early trade. The 50-share NSE Nifty was up 54.20 points to 24,147.50.
Why Sensex, Nifty Trade Higher On August 28: Experts’ Take
“Global cues are more supportive than they have been at any point this week. US markets closed firmly higher, with the Dow Jones Industrial Average gaining 0.20 per cent, the S&P 500 rising 0.72 per cent and the Nasdaq advancing 1.57 per cent,” Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 298.26 crore on Thursday, according to exchange data.
“Sentiment in technology and semiconductor stocks, however, was clearly lifted by Nvidia”s blowout quarterly results, which triggered a broad rally across AI-linked names in the US, helping the Nasdaq end about 1.5 per cent higher,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
He said the focus now shifts to Fed Chairman Kevin Warren’s first Jackson Hole keynote speech, which is the most-watched macro event of the week.
Top Losers And Gainers
Tata Consultancy Services, Tech Mahindra, Infosys, HCL Tech, Titan, and Power Grid were the top gainers from the 30-share Sensex basket. Meanwhile, UltraTech Cement, Mahindra & Mahindra, ICICI Bank, and State Bank of India were trading lower.
At the same time fell a bit in early trade. Brent crude, the global oil benchmark, was down 0.56 per cent at USD 89.20 per barrel.
International Market Trades Higher
On Thursday, the Sensex fell 539.35 points, or 0.70%, for the second consecutive day, closing at an intra-day low of 76,933.59 on the day of monthly derivatives expiry. Similarly, the Nifty fell 116.90 points, or 0.48%, to close at an intra-day low of 24,090.85.
In Asian markets, South Korea’s Kospi was undervalued, while Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Cheng index were overvalued. US markets closed higher on Thursday.
Stock Market Update On August 28: FAQs
- What fueled domestic equity indices on August 28?The rebound in equity indices in early trade was driven by buying in blue-chip IT stocks. The IT rally was further driven by Nvidia’s quarterly results-and positive global cues, following a strong performance in US markets.
- What macro event are market participants currently monitoring?Investors’ focus has shifted to the upcoming keynote speech by Fed Chairman Kevin Warren, which is considered the most-watched macro event of the week.
- What was the recent activity of Foreign Institutional Investors (FIIs)?FIIs were net sellers on Thursday. They have offloaded equities worth Rs 298.26 crore, according to exchange data.