Stock markets start with gains despite mixed global trends

MUMBAI: Indian stock markets opened on a positive note on Thursday, September 5, despite mixed global trends following a significant sell-off across global markets the previous day.

As of 10:00 AM, the BSE Sensex was up 13 points, or 0.02 per cent at 82,366, while the Nifty 50 gained 9 points, or 0.04 per cent to reach 25,208.

The top performers in the Nifty 50 were UltraTech Cements, Divi’s Laboratories, Shriram Finance, Titan, and JSW Steel.

On the downside, Nestle India, HDFC Life Insurance, Britannia, Bharti Airtel, and HCL Technologies were the major laggards.

Market sentiment was supported by positive Asian cues and a strong showing from the Gift Nifty index, while a drop in crude oil prices below $70 per barrel provided further optimism for local investors.

Nifty in positive territory

Early trades indicated the Nifty would remain in positive territory, bolstered by hopes that the Federal Reserve could engineer a soft landing for the U.S. economy.

Foreign Institutional Investors (FIIs) turning net buyers in recent sessions also contributed to the upward momentum.

“FIIs have been a significant support in the market, especially over the past few sessions,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.

Asian markets mixed

Meanwhile, Asian markets saw mixed trends, with shares following Wall Street futures lower on Thursday after Nvidia’s earnings underwhelmed some bullish investors.

The dollar held steady, and the U.S. Treasury yield curve remained close to turning positive.

European markets were expected to open mixed, with EUROSTOXX 50 futures down 0.2 per cent and FTSE futures up 0.2 per cent. Investors are keeping an eye on inflation data from Germany and Spain, where lower-than-expected figures could strengthen the case for further policy easing in Europe.

US weekly data

Additionally, the U.S. weekly jobless claims report, crucial due to the Federal Reserve’s focus on the labor market, was set to be released later in the day.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.3 per cent, led by losses in tech stocks. Japan’s Nikkei fell 0.2 per cent, and South Korea’s Kospi index slid 1 per cent.

In China, blue-chip stocks were flat after three consecutive days of losses, reflecting concerns over the country’s fragile economic recovery.

In the bond markets, U.S. Treasury yields were stable, with two-year yields at 3.87% and 10-year yields at 3.84%. The dollar remained above its one-year low, under pressure from expectations of a potential Fed rate cut.

Gold prices continued their upward trend, rising 0.6 per cent to $2,517.73 per ounce, approaching their record high of $2,531.60.

Gold shines, oil gains

Oil prices edged higher after two days of declines, with Brent crude futures up 0.2 per cent at $78.83 per barrel and U.S. West Texas Intermediate futures gaining 0.3 per cent to $74.77 per barrel.

Concerns over demand in China and the U.S. were counterbalanced by supply disruptions from Libya.