SENSEX and NIFTY50 open 1% gap-up driven by positive global cues; IT stocks take the lead

Indian markets started the day with significant gains, with NIFTY50 up by 1.03% and SENSEX up by over 1.04%. The broader markets opened in positive territory. In early trading, all sectors were positive, with Nifty IT and Realty being the top gainers. The India VIX plunged over 2%, reaching around the 15.08 mark, signalling decreased volatility.

Key triggers for positive market opening

• The U.S. markets ended higher on Thursday, with the Nasdaq surging by over 400 points. The Commerce Department released a report showing much stronger-than-expected retail sales growth in July, which eased concerns about the economic outlook.

• The Japanese benchmark index, Nikkei 225, has almost recovered all the losses incurred since August 1, 2024, which were driven by the unwinding of the yen carry trade. The Nikkei index closed nearly 3% higher.

• Prime Minister Narendra Modi's address on Independence Day also encouraged optimism. He stated that the government is taking steps to transform India into a global manufacturing hub and called for improving the quality of products and services to meet international standards.

FII and DII Activity

On Wednesday, August 14, 2024, foreign institutional investors (FIIs) sold shares worth ₹2,595.27 crore, while domestic institutional investors (DIIs) bought shares worth ₹2,236.21 crore.

Market Indices

At 9:25 AM, the SENSEX traded 1.04% higher above the 79,900 level. The NIFTY50 also rose by over 1.03%, trading above the 24,350 mark. The Nifty Bank also increased by 1.10%, trading above the 50,200 level.

Broader Indices

Looking at the broader indices, the Nifty Midcap 100 index was trading up by 0.92% above the 57,000 level, while the Nifty Smallcap also trading up by 1.09%, near the 18,300 level. Market breadth remains strong as advancing stocks outnumber the declining stocks.

Sectoral Performance

Within the sectoral landscape, NIFTY IT (+1.91%), NIFTY Realty (+1.76%), and NIFTY Auto (+1.63%), were the top-performing sectors.

Top Gainers and Losers

U.S. Markets

The main indexes of Wall Street closed on Thursday's trading day higher. The Nasdaq gained over 2% as robust consumer spending was indicated by U.S. retail sales data for July, allaying concerns about an impending recession in the greatest economy in the world.

The US 2-year bond yield dropped 26 basis points to 4.08%, while the US 10-year Treasury yield decreased 5 basis points to 3.91%.

Commodities

Early Asian trading on Friday saw a slight decline in oil prices, but the market's benchmarks were set for a second straight weekly gain. The positive US economic data eased investor concerns about a possible recession in the country that consumes the most oil.

U.S. West Texas Intermediate crude futures dropped $0.29, or 0.37%, reaching $77.87 per barrel.

Stocks in F&O Ban

Stocks that are banned for trading in the F&O segment on August 16, 2024, are Aarti Industries, Aditya Birla Capital, Aditya Birla Fashion and Retail, Bandhan Bank, Biocon, Birlasoft, Chambal Fertilisers and Chemicals, GNFC, Granules India, India Cements, IndiaMart, LIC Housing Finance, Manappuram Finance, NMDC, PEL, PNB, RBL Bank, SAIL and Sun TV.