On Monday, the key Indian equity indexes, the BSE Sensex and Nifty, saw strong starting action. The Nifty50 reached over 22,550, and the BSE Sensex increased by 250 points. The BSE Sensex was up 214 points, or 0.29%, at 74,462.55 at 9:21 AM. The Nifty50 was up 53 points, or 0.24%, at 22,566.75.
For the third week in a row, benchmark indexes concluded the first week of FY25 on a high note. Important statistics on the local and international economy, such as US inflation figures, unemployment claims, and CPI and IIP figures, will impact the market picture in the future.
Senior Vice President of Master Capital Arvinder Singh Nanda said that more consolidation of the Nifty is anticipated in the next sessions, with support projected in the 22,400–22,300 area and resistance perhaps around the 22,700–22,800 levels.
According to analysts, the latest Nifty consolidation amid weak global indications points to a time-wise decline. They recommend that traders stick to a bullish stance as long as the Nifty stays above the 22,200 mark.
Following a good employment report that suggested a robust economy, US equities finished higher on Friday, perhaps postponing the US Federal Reserve's interest rate reductions. The Nasdaq climbed 1.2%, the S&P 500 gained 1.1%, and the Dow gained 0.8%.
Asian markets followed Wall Street's optimistic outlook, with equities soaring in response to better-than-expected US payroll statistics. Oil prices dropped after Israel withdrew its forces from Gaza and Middle East tensions subsided.
The price of oil dropped by more than $1 per barrel, with Brent falling below $90. Prior to the announcement of US inflation statistics and as Treasury rates hit all-time highs for December, the dollar held steady during Asian trade on Monday.
For the fourth day in a row, foreign portfolio investors were net sellers, while domestic institutional investors sold shares valued at Rs 893 crore. In relation to the US dollar, the Indian rupee strengthened by 8 paise to settle at 83.31 as the RBI kept the benchmark interest rate at 6.5% for a seventh consecutive meeting.
Net short position increased from Rs 33,628 crore on Thursday to Rs 35,190 crore on Friday, according to FII data.
