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Indian benchmark equity indices, the BSE Sensex and Nifty50, rose at the market open on Thursday, supported by positive global cues.
Stock Market Updates
Sensex Today: Indian benchmark equity indices, the BSE Sensex and Nifty50, rose at the market open on Thursday, supported by positive global cues.
At the opening bell, the BSE Sensex gained 431.35 points, or 0.56%, reaching 77,155.43, while the Nifty50 advanced by 132 points, or 0.57%, to 23,345.20.
Global Cues
In the Asia-Pacific region, markets were also on the rise on Thursday, following strong gains on Wall Street.
South Korea’s Kospi climbed by 1.16%, and the smaller-cap Kosdaq index surged by 1.61%, after the Bank of Korea surprised markets by keeping its benchmark rate unchanged at 3%. Economists had expected a 25 basis point rate cut.
Japan’s Nikkei 225 rose by 0.54%, while the Topix index gained 0.18%. Japan’s annual producer price index increased by 3.8% in December, meeting economists’ expectations.
Hong Kong’s Hang Seng index advanced by 1.72%, and mainland China’s CSI 300 rose by 1.7%. In Australia, the S&P/ASX 200 gained 1.47%.
A global equities gauge surged on Wednesday, and US Treasury yields dropped after data showed that core US inflation for December was lower than expected, fueling hopes that the Federal Reserve may ease interest rates further.
Oil prices also rose, supported by a large draw in US crude stockpiles and concerns over potential supply disruptions from new US sanctions on Russia. However, oil price gains were capped as US and Qatari negotiators reached a deal to end the Gaza conflict, which has lasted 15 months.
Earlier, US Bureau of Labor Statistics data revealed that the consumer price index (CPI) rose by 2.9% year-over-year in December, in line with expectations, up from 2.7% in November. However, core inflation, which excludes food and energy prices, increased by 3.2%, slightly below forecasts of 3.3%.
Investors were encouraged by the inflation reading, particularly as data on Tuesday showed that US producer prices had risen moderately in December. Following the release, traders priced in nearly equal odds of the Fed cutting interest rates twice by year-end, with the first reduction expected in June.
On top of the positive economic data, Wall Street saw strong earnings results from JPMorgan, BlackRock, and Goldman Sachs. JPMorgan reported its largest-ever annual profit, BlackRock hit a record $11.6 billion in assets, and Goldman Sachs saw its profit more than double in the final quarter of 2024.
On Wall Street, all three major indices posted their largest daily percentage gains since November 6, the day after the US presidential election. The Dow Jones Industrial Average jumped 703.27 points, or 1.65%, to 43,221.55; the S&P 500 rose 107 points, or 1.83%, to 5,949.91; and the Nasdaq Composite surged 466.84 points, or 2.45%, to 19,511.23.
