Sensex Opening Bell: Stock market returns green; Sensex rises 400 points, Nifty crosses 25000

New Delhi| Indian stock markets opened with gains on Thursday after shares rose globally after US inflation data softened in August. The Nifty 50 index opened at 25,059.65 points, up 0.57 per cent or 141.20 points, while the BSE Sensex rose 0.5 per cent or 407 points to reach 81,930.18 points.
Global markets responded positively to U.S. inflation data, as it raised the possibility of the Fed cutting interest rates on Sept. 18. VK Vijayakumar, chief investment strategist, Geojit Financial Services, said, “The latest inflation data in the US is slightly positive for the markets”. The 12-month inflation has dropped from 2.9 percent to 2.5 percent as CPI inflation hit 0.2 percent in August. This has cleared the way for a rate cut by the Fed in September. But as core inflation remains high at 3.2%, the Fed is likely to remain vigilant and avoid a rate cut of 50 bp, ultimately settling for a rate cut of 25 bp.”
He further said, “CPI inflation in India is also expected to remain low by about 3.5 per cent in August”. This could facilitate the MPC to cut rates as early as 2024. In short, benign inflation conditions and prospects for rate cuts are positive for stock markets”.
On the National Stock Exchange, all broad market indices including Nifty Next 50 and Nifty 100 opened in green. In the sectoral index, Nifty Metal and Nifty PSU banks were seen trading with gains of 1.29 per cent and 0.23 per cent respectively. Shares of Tata Motors continued to be under pressure, however, with its shares falling to around 0.5 per cent. Meanwhile, Bajaj Housing Finance IPO received a record Rs 3.23 lakh crore as application money from 89 lakh investors.
Asian markets also opened strongly on Thursday. Japan’s Nikkei 225 index rose about 2.7 percent with strong buying sentiment, while Taiwan’s Taiwan Weighted index showed a rise of more than 3 percent. After the rise in Asian shares, South Korea’s Kospi and Hong Kong’s Hang Seng also rose. In the U.S., markets saw a rally on Wednesday, with the S&P 500 and Nasdaq indices up 1 percent and 2.17 percent, respectively.