The Indian stock markets opened with significant gains today, driven by a robust recovery in global markets, particularly on Wall Street. The S&P BSE Sensex surged by 814.01 points, reaching 79,700.23 at 9:20 am, while the NSE Nifty50 rose by 249 points, trading at 24,366.
Broad market indices also mirrored the positive sentiment, with most sectors seeing recovery alongside the benchmark indices. Among the top performers were Eicher Motors, ONGC, Tech Mahindra, HCLTech, and LTIM, all recording notable gains.
However, RVNL (Rail Vikas Nigam Limited) saw a significant dip of nearly 4 per cent after reporting a 35 per cent decline in its Q1 profit, a sharp contrast to the broader market’s upward momentum.
Commenting on the market trends, Geojit Financial Services Chief Investment Strategist Dr VK Vijayakumar attributed the sharp rebound to improved investor sentiment following a recovery in US markets. He noted that the fears of an impending recession might have been overstated, as evidenced by lower-than-expected initial jobless claims, which suggest the US labour market remains relatively strong.
Despite the positive cues, Dr Vijayakumar cautioned that the slowing US economy, coupled with ongoing challenges in China, could weigh on global growth prospects in the near term. He also pointed out that Indian market valuations remain elevated, limiting the potential for a sustained rally.
On a positive note, he expects tech stocks to recover today, buoyed by the optimistic outlook from the US markets. However, the mixed performance among sectors indicates a cautious approach by investors as they navigate the evolving global economic landscape.
