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The Indian stock market continued its upward momentum for the 11th consecutive day, driven by Reliance Industries' 1:1 bonus share announcement. Despite negative signals from global markets, Indian indices pushed higher, with hopes of further gains supported by an upbeat US GDP report that eased recession fears. Crude oil prices approaching $80 per barrel have not dampened market sentiment, although increased selling pressure is anticipated.
India's GDP growth data for the first quarter ending in June will be released later today, with expectations of a slower growth rate compared to the previous quarter.
In the derivatives market, Gift Nifty closed at 25,240 on Thursday night and rose to 25,290 this morning, indicating a positive start for Indian markets today.
European, US, Asian markets
European markets ended strongly on Thursday, with Germany's DAX hitting record highs, despite a negative GDP growth report. Inflation in Germany has eased to 2%, providing some relief.
US markets had a mixed close on Thursday, with the Dow Jones reaching record levels, while the S&P 500 remained flat, and the Nasdaq closed slightly lower due to disappointing results from Nvidia, which raised concerns about future growth. Nvidia's shares fell by nearly 7%. However, higher GDP growth and lower unemployment claims boosted confidence in the US economy, countering recession fears with a 3% GDP growth in the second quarter.
On Thursday, the Dow Jones index gained 243.63 points (0.59%) to close at a record 41,335.05. The S&P 500 slipped by 0.22 points to close at 5591.96, and the Nasdaq fell by 39.60 points (0.23%) to 17,516.43.
US futures are showing gains today, with the Dow up by 0.02%, the S&P by 0.12%, and the Nasdaq by 0.21%. US 10-year Treasury yields fell to 3.863%.
Asian markets are trending higher this morning. Japan's Nikkei started slightly lower but moved up, while the Australian index gained nearly 0.5%.
Indian markets
On Thursday, Indian markets saw a steady climb after a volatile start, with the Nifty reaching a new record of 25,192.90 and the Sensex touching 82,285.83. The Nifty closed with gains for the 11th consecutive day.
The Sensex closed up 349.05 points (0.45%) at 82,134.61, while the Nifty gained 99.60 points (0.40%) to end at 25,151.85. The Bank Nifty dipped slightly by 0.02% (8.90 points) to close at 51,152.75.
The Mid Cap Index dropped by 0.44% to 58,883.95, and the Small Cap Index fell by 0.54% to 19,214.55.
Foreign investors bought shares worth ₹3,259.56 crore in the cash market on Thursday, while domestic funds and institutions purchased shares worth ₹2,690.85 crore.
The market closed on a bullish note yesterday. The strong finish of August's F&O contracts has generated optimism for the September series, with bulls expecting the Nifty to move towards the 25,300-25,500 range.
The Nifty has support at 25,050 and 24,950 levels, with resistance around 25,200 and 25,300.
Reliance bonus and growth plans
Reliance Industries announced a 1:1 bonus share issue during its annual general meeting, with Chairman Mukesh Ambani stating that the company aims to rank among the top 30 globally by market capitalisation. The board meeting on September 5 will finalise the details. Following the bonus issue, the price of Reliance shares is expected to halve. Ambani also highlighted the company's plans to invest ₹75,000 crore in new energy projects, positioning Jamnagar as a global hub for new energy production. He emphasised that the new energy business would grow as large as the petrochemical business, with ongoing innovations in production processes driven by AI.
Gold rises again, crude oil climbs
Gold is attempting to set a new record, closing at $2,521.90 per ounce on Thursday and trading at $2,520 this morning. The positive US GDP and unemployment data, which reduce recession fears, have increased expectations of a rate cut, supporting the market. The upcoming Personal Consumption Expenditure (PCE) data is also expected to favour a rate cut. The market anticipates further price increases.
December gold futures have climbed to $2,555 per ounce.
In Kerala, gold prices remained steady at ₹53,720 per sovereign yesterday.
Silver prices have risen to $29.42 per ounce.
The dollar index reached 101.34 on Wednesday and moved up to 101.36 this morning.
The rupee gained ground yesterday, closing 8 paise higher at ₹83.87 against the dollar.
Crude oil prices have risen again, with Brent crude closing 1.5% higher at $79.94 per barrel due to disruptions in Libyan exports. Prices touched $80 per barrel this morning. WTI crude is at $76, and UAE's Murban crude is at $78.90.
Cryptocurrencies are currently trading lower, with large investors pulling out. Bitcoin is below $59,200, and Ether is trading at $2,525.
Industrial metals had a mixed performance. Copper fell 0.21% to $9,115.85 per ton, while aluminum dropped 1.08% to $2,457.35 per ton. Nickel, zinc, and tin prices increased.
Market indicators
- Sensex 30: 82,134.61 +0.43%
- Nifty 50: 25,151.95 +0.40%
- Bank Nifty: 51,152.75 +0.02%
- Midcap 100: 58,883.95 -0.44%
- Smallcap 100: 19,214.55 -0.54%
- Dow Jones 30: 41,335.05 +0.59%
- S&P 500: 5591.96 -0.00%
- Nasdaq: 17,516.43 -0.23%
- Dollar ($): ₹83.87 -₹0.08
- Dollar Index: 101.34 +0.25
- Gold (Ounce): $2,521.90 +$16.80
- Gold (Sovereign): ₹53,720 +₹00
- Crude (Brent) Oil: $79.94 +$01.29
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