Indian equity benchmarks commenced trading on a positive note on Tuesday, December 24, 2024, extending gains from the previous session. The upward movement was supported by a firm trend in Asian markets and a positive signal from Gift Nifty futures.
Market Opening and Key Indices Performance
The benchmark S&P BSE Sensex opened higher, gaining over 100 points. Similarly, the NSE Nifty 50 started the session above the 24,300 mark. This positive opening followed a strong close in the US stock markets on Monday, where major indices like the Dow Jones and S&P 500 ended in the green, providing a favorable global backdrop for risk assets.
Market analysts pointed to the positive Gift Nifty trend as a key driver for the day's opening. Gift Nifty, which trades on the NSE International Exchange in Gujarat's GIFT City, is often seen as an early indicator of sentiment for the Indian market.
Stock-Specific Action and Sectoral Trends
Several heavyweight stocks were in the spotlight during early trade. Shares of Infosys and Tech Mahindra witnessed buying interest, contributing to the gains in the information technology sector. The IT index was among the top performers, reflecting optimism in the sector.
In the power sector, NTPC shares also traded with positive momentum. Other notable movers included Reliance Industries and HDFC Bank, which provided further support to the key indices. The broader market sentiment was cautiously optimistic, with mid-cap and small-cap indices also trading in positive territory.
Global Cues and Economic Context
The rally in Asian markets provided a strong tailwind for Indian equities. Major indices across the Asia-Pacific region, including Japan's Nikkei and South Korea's Kospi, traded higher. This was largely in response to the overnight gains on Wall Street, where investors welcomed encouraging economic data.
Domestically, traders were also assessing the inflow of foreign portfolio investments and the movement of the Indian rupee against the US dollar. The market's performance on this shortened trading week, with a holiday on Wednesday for Christmas, is being closely watched for year-end trends.
Experts suggest that while the immediate trend appears positive, volatility may persist due to lower trading volumes typical of the holiday season. Investors are advised to focus on stock-specific opportunities with strong fundamentals rather than making broad-based bets.
