Stock Market Today Sensex: The Indian stock market gave a strong opening on Friday amid strong signals from global markets and improvement in domestic factors. Sensex was trading with a gain of 300 points, while Nifty was up 85 points near the important level of 26,000. The strong rise in metal shares was the main reason for this rise. Barring slight weakness in the IT index, almost all sectors were seen trading in the green, indicating strong market sentiment.
Great signals from global markets
Global signals looked even better for the market. After Fed rate cut in America, Dow Jones jumped 650 points and reached its life high. The S&P 500 closed at a record high. In Asia, Japan’s Nikkei also opened with a huge gain of 650 points. GIFT Nifty was also trading near 26,150 with a sharp gain of 135 points. The strong glow from these global markets pointed to a positive and strong start for the domestic market.
Movement in commodity and dollar index
Strong movement was also seen in the commodity market. Silver made a new life high of Rs 1,99,220 with a big jump of Rs 10,600 in the domestic market. In the international market also it jumped 4% and reached a record level above $64.50. On the other hand, the dollar index continued to remain weak and it slipped below two-month low of 98. Base metals got direct benefit from this fall of dollar, LME copper reached life high, zinc jumped 4% to one and a half year high and aluminum also showed strength.
Government decisions and investment flows
The market’s eyes are fixed on the cabinet meeting to be held today at 1 pm. It is expected that the Insurance Amendment Bill can be approved in this meeting. This is likely to increase the FDI limit in the insurance sector from 74% to 100% and give green signal to the composite license, which will have a big impact on the sector.
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On the fund flow front, foreign institutional investors (FIIs) remained sellers in the cash market, but domestic funds (DIIs) continued their record 74-day buying spree by infusing ₹3,800 crore into the market. Overall, the global boom, strength of commodities and expectations of government decisions have given a strong start to the market today.
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