Steady Gains: Indian Stock Market Cheers Economic and Global Cues

Indian stock benchmarks maintained a steady ascent on Wednesday, marking a fifth consecutive day of gains driven by robust economic fundamentals including manageable inflation and strong growth indicators. This trajectory was further endorsed by favorable global cues, bolstering investor confidence in the market's momentum.

By the time of this report, the Sensex rose by 97.80 points to 82,489.52, up by 0.12 percent. Similarly, the Nifty increased by 31.20 points, reaching 25,135.45, also a rise of 0.12 percent. While sectors such as auto, media, and oil and gas topped the movers, areas like PSU, private banking, and consumer durables showed declines. Concurrently, international gold prices ascended to USD 3,360 per ounce, a slight increase of 0.5 percent.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, projected a continuation of this consolidation trend. "Liquidity will buoy a mild rally, but a substantial upswing requires robust earnings. Without signs of such recovery, market rallies may be short-lived," he noted. Meanwhile, financial expert Ajay Bagga pointed to a lack of clarity on the US-China trade deal as a source of market uncertainty. Despite international volatility, domestic stocks have performed well, outpacing global indices driven by acceptable inflation levels and anticipated growth of around 9-10 percent in 2024, up from past annual increases.

(With inputs from agencies.)