Indian Markets Open Higher As Softer US Bond Yields Boost Global Risk Appetite, Lifting Investor Sentiment

Mumbai: Indian stock market indices opened on a positive note on Thursday, breaking an extended losing streak. This move came after a decrease in US bond yields, which boosted international risk-taking and marked a potential short-term reversal for the market. The Sensex climbed 558 points, or 0.73%, to 77,468, while the Nifty 50 increased by 147 points, or 0.61%, to 24,225.45.

Notably, sectoral indices such as Nifty IT, Nifty MidSmall IT & Telecom, and Nifty Metal witnessed significant gains, surging by 1% each in the early trading session. Analysts expressed optimism about a mild market recovery, attributing it to short-covering and a bullish reversal candle formation near the rising channel support.

Analysts noted that a sustained rise above the 24,200-24,260 zone could extend the pullback, while 24,060 remains the crucial support level. Should the index fall below 24,060, it may trend towards 23,575. Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) extended their buying streak for the second and seventh consecutive sessions, respectively, investing a combined Rs 4,380 crore.

Additionally, supportive global cues emerged with reports suggesting the US was contemplating buying back longer-term Treasury securities to help lower borrowing costs. Asian markets, too, recorded a favorable trading session. US markets closed on a positive note on Wednesday, with the S&P 500 inching up by 0.21% and the Nasdaq climbing 0.16%.

Meanwhile, crude oil prices remained relatively stable, with Brent crude trading at $92 per barrel, up 0.33%, and US West Texas Intermediate crude standing at $84.52 per barrel, up 0.17%.