Indian stock markets reached new all-time highs on Friday morning, driven by strong performances in regional markets and positive economic data from the United States that eased fears about economic slowdown. Investors are now looking forward to domestic quarterly growth figures to further assess the market outlook.
In early trading, the NSE Nifty 50 index surged to a peak of 25,257, while the S&P BSE Sensex rose to a record 82,637. Both indices achieved all-time highs, reflecting robust market momentum.
This rally marks the Nifty’s 11th consecutive session of gains, its longest winning streak in nearly 17 years. The ongoing market optimism is fueled by expectations of a potential interest rate cut by the U.S. Federal Reserve in September, alongside strong domestic investment flows.
Domestic institutional investors (DIIs) have been net buyers, acquiring shares worth $6.14 billion in August alone, which is roughly double the outflows recorded from foreign portfolio investors (FPIs).
Asian markets also saw gains, with the MSCI’s broadest index of Asia-Pacific shares outside Japan climbing 0.7%. Wall Street closed higher on Thursday, with the Dow Jones Industrial Average hitting a record closing high, bolstered by robust U.S. economic data.
Traders are now awaiting the release of U.S. core personal consumption expenditures data, a key inflation measure favored by the Federal Reserve, which is expected later on Friday. This data is anticipated to provide further insight into the likelihood of a rate cut in September.
In India, market participants are eagerly waiting for the April-June quarter GDP growth figures, which are set to be released after market hours. A Reuters survey suggests that the growth rate likely slowed to 6.9% year-on-year for the quarter, primarily due to reduced government expenditure during the national election period.
Among the sectors, 11 out of 13 major segments recorded gains. The small and mid-cap stocks, which are more focused on domestic markets, saw gains of approximately 0.5% each.
However, not all stocks fared well. SpiceJet shares dropped around 4% after India’s aviation regulator placed the budget airline under enhanced surveillance, following an audit that uncovered “certain deficiencies.”
In contrast, sugar stocks such as Balrampur Chini Mills, Shree Renuka, Bajaj Hindusthan, and Dwarikesh Sugar experienced significant gains, ranging from 3% to 10%. This surge followed the government’s announcement allowing sugar mills to produce ethanol from cane juice or syrup starting in November.
