Bengaluru: India's key stock indices opened on a positive note this Friday, buoyed by optimism surrounding global trade developments and expectations of a rebound in domestic corporate earnings. The Nifty 50 index rose by 0.17% to 25,935.1, while the BSE Sensex gained 0.13% to reach 84,667.23 as of 9:15 a.m. IST. Over the past six sessions, both indices have appreciated approximately 3%, narrowing the gap to their record highs from September 2024.
Investor sentiment was bolstered by the announcement that U.S. President Donald Trump is scheduled to meet Chinese President Xi Jinping next week in South Korea. This development raised hopes of a de-escalation in the ongoing trade tensions between the two largest economies, potentially leading to improved global trade dynamics.
In the domestic arena, robust earnings reports from key sector leaders have further fueled market optimism. Additionally, sustained demand during the festive season has contributed to a positive economic outlook, encouraging investors to remain bullish.
Despite the overall positive sentiment, analysts caution that the recent rally may prompt profit-taking, leading to consolidation at current levels. As the market approaches its previous highs, investors are advised to exercise caution and monitor developments closely.
The broader market reflected this cautious optimism, with 15 of the 16 major sectors advancing at the open. Small-cap and mid-cap stocks also saw gains of about 0.2% each, indicating a broad-based positive sentiment across various segments of the market.
Overall, while the Indian stock market shows signs of strength, investors are advised to stay informed about global trade developments and domestic economic indicators to navigate the current market conditions effectively.