Stock Market Update: Nifty50 Surpasses 24,800; BSE Sensex Rises Nearly 200 Points
The Indian stock market opened positively on Monday, with both the Nifty50 and BSE Sensex indices showing gains. Nifty50 crossed the 24,800 mark, while BSE Sensex rose by nearly 200 points. Market analysts suggest that despite external challenges such as global trade uncertainties, a streamlined Goods and Services Tax (GST) structure and strong domestic economic indicators are likely to support market momentum in the near term.
Market Performance Overview
As of 9:17 AM, Nifty50 was trading at 24,804.50, reflecting an increase of 64 points or 0.26%. Meanwhile, BSE Sensex reached 80,905.32, up by 195 points or 0.24%. This upward trend in the stock market comes amidst a backdrop of mixed signals from global markets. Analysts are closely monitoring the impact of international trade relations, particularly between the United States and India, which could influence investor sentiment.
Trade Relations and Market Sentiment
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlighted the ongoing uncertainty surrounding US-India trade relations. He noted that recent comments from President Trump regarding the “special US-India ties” could indicate a potential improvement in the relationship. However, concerns remain due to Trump’s remarks about sanctions against Russia and ongoing criticisms from trade advisor Peter Navarro. These factors contribute to a cautious outlook among investors, particularly regarding India’s IT exports, which may face restrictions despite the resilience of trade in services.
Impact of GST Reforms
The market had initially reacted positively to the GST reforms, but this enthusiasm appears to have waned as the implications of the changes have been partially priced in. Dr. Vijayakumar pointed out that the real impact of the new GST rates, set to take effect after September 22, could lead to a significant increase in demand, especially in sectors like automobiles and consumer durables. This anticipated demand surge has the potential to uplift market sentiments, providing a much-needed boost to investor confidence.
Global Market Influences
In the global arena, US equities experienced a slight decline on Friday as investors weighed economic concerns against the possibility of interest rate cuts by the Federal Reserve. This uncertainty was exacerbated by disappointing employment figures for August. Conversely, Asian markets showed strength on Monday, while the US dollar exhibited volatility. Additionally, oil prices rose in early trading, recovering from previous declines following OPEC+’s decision to slow production increases in response to anticipated reduced global demand. On the domestic front, foreign portfolio investors sold shares worth Rs 1,304 crore on Friday, while domestic institutional investors made purchases totaling Rs 1,821 crore, indicating a mixed sentiment among different investor groups.
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