GIFT Nifty, the India NSE Nifty 50 derivatives indicator, boosts green by 0.33% as of now, indicating a powerful gap-up opening of the Indian equity markets tomorrow. This is an indication that there is increasing optimism from investors, complementing the recent rally in the markets. And then comes the US Inflation data at 2.9% which boosts Dow Jones over 1.25% getting the fragrance of a rate cut soon by US Fed.
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Good Performance by Indian ADRs
Indian American Depositary Receipts (ADRs) i.e. shares of leading Indian businesses listed in US, also register good performance. Leading ADRs such as HDFC Bank, Infosys, and Dr. Reddy’s Labs post good gains, which reflect overseas investor confidence in Indian economic growth prospects at the moment. Such a trend in ADRs is likely to keep the uptrend sentiments for Indian equities locally and globally.
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Dow Jones Trades with High Gains
The uptrend wave is spread all over US markets, with the Dow Jones Industrial Average posting gains of over 1.25%. This rally in Wall Street is primarily led by positive inflation data, CPI released few moments ago and slightly due topositive corporate earnings, which drive the hopes of Federal Reserve rate cuts soon, in fact may be by the next FOMC meeting on 16-17th September. The increase in Dow Jones and the advances in S&P 500 and Nasdaq create a positive global market sentiment favoring emerging markets such as India.
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Market Sentiment: An Indication of Bullish Indicators
The 0.33% increase in GIFT Nifty as well as robust Indian ADRs and a surging Dow Jones index indicate a positive market scenario. Domestic players expect a bullish opening tomorrow morning when Indian markets open, while the interest from overseas investors continues to be displayed via ADR strength. The combination of favourable macroeconomic trends likely emerging from the US market’s strength, Indian markets are likely to see further upside momentum in the near term and the bullish forces would hope for a triggered rally after they feel fed up of the lethargy in the flat trading market.
