New Delhi [India], September 8 : Indian equity benchmarks opened on a positive note on Monday, tracking firm global cues and investor optimism over potential improvement in relations between the US and India under the Trump and Modi administrations.
At the opening bell, the Nifty 50 gained 61.60 points or 0.25 per cent to 24,802.60, while the Sensex surged 189.63 points or 0.23 per cent to 80,900.39.
Market sentiment was also buoyed by a subdued US jobs report, which has strengthened expectations of a US Federal Reserve rate cut in the upcoming September 17 meeting.
Banking and market expert Ajay Bagga toldthat optimism on bilateral ties and expectations of monetary easing in the US are driving early trade. "Hopes for improvement in Trump admin and Modi government relations are the dominant theme today. There are plenty of global cues impacting markets. The subdued US jobs report makes a rate cut by the Fed on Sep 17 a certainty. There is a growing call for a jumbo rate cut of 50 bps," Bagga said.
He further highlighted political developments in Japan, where Prime Minister Ishiba stepped down, citing pressure over the unpopular US trade deal. "Yen is down while Japanese stocks are rallying," he added.
In domestic markets, broader indices on the NSE mirrored the upbeat trend. The Nifty 100 index rose 0.26 per cent, Nifty Midcap 100 added 0.34 per cent, and Nifty Smallcap 100 gained 0.32 per cent in early trade.
Sectoral indices also opened on a strong footing. Nifty Auto jumped 0.45 per cent, while Nifty FMCG inched up 0.07 per cent, Nifty IT rose 0.31 per cent, Nifty Metal surged 0.42 per cent, and Nifty PSU Bank gained 0.28 per cent.
Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, said the Nifty 50 continues to show resilience despite short-term technical challenges. "The Nifty 50 performed well last week, surging by 314 points. Technically, the price is trading below all short-term moving averages, which signals potential short-term weakness. The 25,300 level is acting as strong resistance, and a breakout above it would confirm a continuation of the uptrend in the sector," Gurjar said.
Meanwhile, global factors also influenced investor sentiment. Korean media carried images of handcuffed and shackled Koreans being detained in the biggest US anti-immigration action at an under-construction Hyundai-LG Energy battery plant in Georgia, leading to domestic outrage in South Korea. Reports said companies issued travel advisories urging employees to avoid non-essential US travel.
Across Asia, equity indices rallied in morning trade. Japan's Nikkei 225 surged more than 1.5 per cent, Hong Kong's Hang Seng gained 0.32 per cent, South Korea's KOSPI advanced 0.2 per cent, and Taiwan's Weighted Index was up 0.41 per cent. Singapore's Straits Times, however, remained flat, slipping marginally by 0.05 per cent at the time of filing this report.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor