SENSEX and NIFTY50 surge over 1%; Eicher Motors, Tata Motors and ONGC among top gainers

Indian markets opened on a positive note, with both NIFTY50 and SENSEX surging significantly. The NIFTY50 index surpassed its August 6 high of 24,382.60, marking a fresh five-day high. The broader markets also opened positively. In the early trading session, all major sectors were trading in the green, with NIFTY IT and NIFTY Auto among the top gainers. The India VIX has declined over 6%, trading around the 15.5 mark, indicating a decrease in volatility.

Key triggers for positive market opening

On Friday morning, the markets opened with notable strength, driven by a wave of optimism that has swept away recent concerns. Morgan Stanley's latest estimates suggest that 75% of the yen carry trade has reversed in the past few days, cooling off some worries about more correction in the markets.

The recent U.S. jobless claims data revealed that fewer people applied for unemployment benefits than expected. This unexpected outcome has provided much-needed relief to market participants, easing concerns over a looming U.S. economic recession.

Following this, the U.S. markets, recorded a sharp rally, with Dow Jones, Nasdaq, and S&P 500 jumping over 2% on Thursday.

FII and DII Activity

On Thursday, August 8, 2024, foreign institutional investors (FIIs) offloaded shares worth ₹2,626.73 crore, while domestic institutional investors (DIIs) bought shares worth ₹577.30 crore.

Key Benchmark Indices

At 9:20 AM, the SENSEX was trading 1.10% higher above the 79,700 level. The NIFTY50 also gained by 1.07%, trading above the 24,350 mark. Similarly, Nifty Bank experienced a significant gain of 0.80%, trading above the 50,540 level.

Broader Indices

Looking at the broader indices, the Nifty Midcap 100 index was trading significantly up by 0.83%, above the 57,100 level, while the Nifty Smallcap 100 soared by 0.90%, trading above the 18,400 level. Market breadth was skewed in favour of advances.

Sectoral Performance

Within the sectoral landscape, all major sectors were trading positively, with NIFTY IT (+2.03%), NIFTY Metal (+1.23%), and NIFTY Auto (+1.38%) among the top gainers.

Top Gainers and Losers

In the NIFTY50 space, Eicher Motors (+3.80%), ONGC (+3.7%), and HCL Tech (+1.86%) were among the top gainers. On the other hand, BPCL (-2.17%), and HDFC Life (-0.52%), were among the top losers.

Commodities

Oil prices dipped slightly on Friday morning but were still set to increase by more than 3% for the week. Positive U.S. jobs data and ongoing Middle East tensions supported oil prices.

U.S. West Texas Intermediate crude futures gained $0.19, or 0.25%, reaching $76.32 per barrel.

Stocks in F&O Ban

Stocks that are banned for trading in the F&O segment on August 9, 2024, are Aditya Birla Capital, Aditya Birla Fashion and Retail, Birlasoft, GNFC, Hindustan Copper, India Cements, IndiaMART InterMESH, LIC Housing Finance, Manappuram Finance, Punjab National Bank, and RBL Bank.