Indian Stock Market Gains Amid Positive Global Cues and Gold's Record Rally

The Indian stock market opened slightly higher on Thursday, with early trading recording modest gains across the two indices. At 9:17 am, the NSE Nifty 50 stood at 25,076.70, marking a rise of 30.55 points or 0.12 percent, while the BSE Sensex saw an increase of 13.07 points or 0.02 percent, at 81,786.73. Market analysts highlighted that positive international sentiment sustained stability in the domestic indices, as investors awaited further global developments.

Experts attributed the early uptrend to mixed global cues and lesser geopolitical concerns in the Middle East. Banking and market expert Ajay Bagga remarked, 'The Israel-Hamas peace deal phase 1 is complete, according to President Trump and the Qatar government. The Middle East risk premium is lowering this morning in Asia. Japan celebrates as the Nikkei hits yet another all-time high, with the incoming Prime Minister proposing a 10% flat income tax to replace the current slab-wise structure that goes up to 45%.' Indian markets have witnessed two consecutive days of Foreign Portfolio Investment net inflows. Reports suggest that the RBI has secured a USD 15 billion position in the offshore NDF markets to bolster the Rupee, which remains the worst-performing Asian currency this year.

In the commodities market, gold continued its impressive upward trajectory. Manav Modi, Analyst - Precious Metal Research at Motilal Oswal Financial Services Ltd., stated, 'Gold surged past the USD 4,000 level for the first time, extending its record-breaking rally as investors sought refuge amid broader geopolitical and economic uncertainty, with expectations of U.S. interest rate cuts.' Modi noted that similar factors drove silver to record highs. 'Gold, long seen as a stable asset during turmoil, has increased by over 55 percent year-to-date after a 27 percent rise in 2024. Silver is up more than 60 percent this year due to spot market tightness,' he explained.

Market experts have cautioned that while optimism prevails, profit booking from recent peaks and developments in the Israel-Hamas ceasefire could influence short-term sentiment. Investors are closely watching the ongoing U.S. government shutdown, now in its ninth day, which continues to weigh on global risk appetite. On a related note, Tata Capital's public issue was subscribed 1.95 times by day three, driven by strong investor interest. Qualified institutional investors led the way, subscribing 3.42 times, with non-institutional and retail investors subscribing 1.98 times and 1.1 times, respectively.

Similarly, LG Electronics garnered substantial investor interest with its public issue subscribed 3.32 times by the second day. Non-institutional investors played a significant role with a subscription rate of 7.6 times, followed by qualified institutional investors at 2.59 times, and retail investors at 1.9 times. (ANI)

(With inputs from agencies.)