Mumbai: The benchmark stock indices, Sensex and Nifty 50 experienced a muted opening to Thursday's trading session, but later witnessed a slight uptick following the passage of the US debt ceiling bill by the House of Representatives. The BSE Sensex gained 50 points to reach 62,678, while the NSE Nifty50 edged up 13 points, settling at 18,547. The positive macro data, including a robust 6.1 percent growth in the fourth-quarter GDP, also contributed to the overall market sentiment.
Leading the gains on the Sensex were Tech M, HUL, TCS, Asian Paints, HDFC, and Wipro. On the Nifty, Apollo Hospitals and Hindalco emerged as additional winners. However, Coal India and Bharti Airtel faced losses of four percent and three percent respectively, leading the declines among frontline stocks. In contrast, the broader markets demonstrated strength, with the BSE MidCap and SmallCap indices rising by up to 0.6 percent.
In global markets, Tokyo shares opened higher on Thursday, despite the decline in the US market due to fears of continued monetary tightening by the Federal Reserve. US stocks closed down on Wednesday as investors were rattled by unexpectedly strong labour market data and concerns over a potential interest rate hike by the Federal Reserve in June.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, expressed optimism regarding the ongoing rally, stating, "There are many positives going in favor of the ongoing rally." He highlighted the passing of the US debt ceiling bill by the House of Representatives, indicating a resolution to the debt impasse. Additionally, significant Foreign Portfolio Investor (FPI) investments in India over the past three days, totaling an impressive Rs 43,838 crores in May, further boosted confidence. The GDP growth figures for Q4FY23 and the full year FY23 at 6.1 percent and 7.2 percent respectively exceeded market expectations, justifying FPI optimism. Vijayakumar also pointed out the positive impact of a 4 percent decline in crude oil prices. However, he expressed concerns about rising valuations, which might prompt Domestic Institutional Investors (DIIs) to sell and potentially neutralize FPI buying.
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