 |
|
The Indian stock markets displayed moderate gains on Monday, with the benchmark indices, S&P BSE Sensex and Nifty 50, registering marginal increases. The Sensex rose by 143.76 points or 0.17% to 83,034.59, while the Nifty 50 added 43.30 points or 0.17% to 25,399.80. Notably, both indices had reached all-time highs earlier in the day, with the Sensex peaking at 83,184.34 and the Nifty at 25,445.70.
The broader market also reflected a positive trend, with the S&P BSE Mid-Cap index adding 0.02% and the S&P BSE Small-Cap index rising by 0.26%. Despite the overall gains, the Nifty traded near the 25,400 level after hitting a low of 25,336.20 in the early afternoon. The market breadth remained positive, with 2,122 shares gaining on the BSE against 1,882 decliners, with 125 shares remaining unchanged.
Adding to the positive sentiment was the news of India's forex reserves reaching a new all-time high of $689.235 billion for the week ending September 6. This represented a jump of $5.248 billion from the previous week, with foreign currency assets, the primary component of the reserves, increasing by $5.107 billion to $604.144 billion. This strong performance in forex reserves indicates the robust health of the Indian economy and its ability to attract foreign investment.
Looking at the global markets, a mixed sentiment prevailed as investors braced for the upcoming interest rate decisions from major central banks. European and Asian stocks exhibited a mixed performance, with Hong Kong stocks declining as investors assessed weak economic data from China. Several key markets were closed for holidays.
China's economic outlook remained subdued, with data indicating a decline in factory output, consumption, and investment in August. Home prices also registered their fastest fall since 2014, prompting the People's Bank of China to signal more monetary easing measures and a heightened focus on combating deflation.
The US markets ended higher on Friday ahead of the Federal Reserve's policy meeting, with the S&P 500 gaining 0.54%, the tech-heavy Nasdaq Composite adding 0.65%, and the Dow Jones Industrial Average jumping 0.72%. Wall Street is now anticipating a 25-basis-point interest rate cut at the Fed's meeting on September 17-18, with the current target rate standing at 5.25% to 5.5%. Economic data indicating a moderation in inflation further supports the case for a rate cut. The consumer price index in August rose 2.5% year-over-year, the lowest level since February 2021.
Overall, the global market landscape remains subject to volatility as investors navigate the uncertainties surrounding interest rates and economic performance. The Indian stock market's performance, however, appears relatively optimistic, buoyed by strong economic indicators and the record high forex reserves.