The Indian stock market closed higher on Thursday, driven by strong domestic investor activity and positive global cues. Financial stocks gained after the RBI’s $21 billion liquidity infusion, while energy stocks benefited from lower crude prices. The BSE Sensex rose by 609.86 points (0.83%) to 74,340.09, and the Nifty 50 added 207.40 points (0.93%) to close at 22,544.70.
US stocks fell on Thursday as investors grew concerned about the potential impact of tariffs on inflation and economic growth. Wall street’s main indices struggled after President Donald Trump announced a one-month suspension of most tariffs on Mexican goods, with Canada potentially receiving a similar reprieve. European equities saw gains, buoyed by optimism surrounding a rate cut and increased government spending in the eurozone, as AP reported.
The following factors will decide the direction of Indian stock market on Friday:
RBI liquidity boost
The Reserve Bank of India’s liquidity support helped uplift market sentiment, particularly in the banking sector. Analysts noted that the RBI’s move was timely, offering much-needed relief to businesses and consumers alike.
Energy and financial sectors lead
Energy stocks surged as crude prices dipped, while strong liquidity supported the banking and consumption sectors, contributing to the market’s rally.
Global sentiment
US President Donald Trump’s temporary tariff reprieve on auto imports from Mexico and Canada also improved global market sentiment, further supporting the Indian rally. This provided a temporary boost amid worries over potential trade wars.
Wall street struggles
While the Indian market saw gains, Wall Street faced setbacks. Chip stocks, including Marvell, saw steep declines, dragging the broader technology sector lower. Financial stocks also suffered, with major banks like Goldman Sachs and Morgan Stanley dipping over 2%.
European markets
The European Central Bank has cut interest rates by 25 basis points to 2.5% to boost economic activity in the eurozone. Amid low inflation and stagnant growth, the ECB aims to ease borrowing costs for consumers and businesses.
Technical outlook for Nifty 50
Rupak De from LKP Securities told ET that the Nifty’s technical indicators showed bullish momentum. The index could target 23,750–23,800 in the short term if the current trend holds.
Most active stocks
Among the most active stocks by turnover were HDFC Bank, BSE, Infosys, and Reliance Industries. Stocks like Tata Steel and Castrol India also saw significant trading volume, indicating strong market interest.
Sector performance
Key sectors seeing strong buying interest included energy, banking, and metals, while some stocks like Kalyan Jewellers and Bharti Hexacom faced selling pressure.
Market sentiment
Investor sentiment was broadly bullish, with 3,006 stocks advancing and 990 declining out of 4,103 stocks on the BSE.
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
