Indian equity market on fire; benchmark Sensex crosses 65,000 mark

Market analysts said the indices hit new highs in the morning trading hours following positive cues from Asian markets and amid improved signs of moderating inflation in the US.

Growing confidence in Indian equity market

The BSE Sensex was trading 510 points – or 0.79 percent – higher at 65,228, while Nifty50 was trading at 19,315, up 126 points in the morning hours.

Analysts see these remarkable gains as a reflection of the growing optimism among investors as inflationary pressures in the US appear to be moderating.

“This development has sparked renewed confidence in the equity markets, propelling Indian shares to unprecedented heights,” a Mumbai-based analyst said.

According to analysts, the recent surge in FPI (foreign portfolio investment) inflows has been triggered by the recent ‘Sell China, Buy India’ strategy of the foreign institutional investors.

Data showing US inflation easing further boosted other Asian markets also on Monday, fuelled by hopes central banks could be nearing the end of their interest rate hiking cycle.

Japan’s Nikkei 225 surged 1.65 percent, while China’s Shanghai Composite and Hong Kong’s Hang Seng rose 1.29 percent and 1.91 percent, respectively.

All three main indexes on Wall Street rallied Friday — with Apple ending above the $3 trillion capitalisation mark for the first time – setting up a positive start to the week for Asian investors.

Oil prices

Oil prices slipped in early Asian trade on Monday as global macroeconomic headwinds and possible further interest rate hikes from the US Federal Reserves offset forecasts of tighter supplies amid OPEC+ cuts.

Brent crude futures dropped 20 cents, or 0.3 percent, to $75.21 a barrel after settling up 0.8 percent on Friday, while US West Texas Intermediate crude was at $70.41 a barrel, down 23 cents, or 0.3 percent, after closing 1.1 percent higher in the previous session.