Sensex Jumps 400 Points as Nifty Rises on Asian Gains

Indian stock markets opened higher on Thursday, with the BSE Sensex climbing more than 400 points and the NSE Nifty 50 trading in positive territory. The gains came as Asian markets provided support, even as hotter-than-expected US inflation raised concerns about tighter global monetary policy and the possibility of another Federal Reserve interest rate hike this year.

Investors remained cautious about the impact of higher US interest rates on emerging markets, including India, where foreign investors have continued to withdraw substantial amounts of capital. Meanwhile, elevated crude oil prices, corporate earnings announcements and major initial public offering plans remained key factors influencing market sentiment.

Sensex and Nifty Begin Thursday’s Session Higher

The Sensex advanced more than 400 points in early trading, while the Nifty 50 moved into positive territory. The opening gains followed a weaker session on Wednesday, when both benchmark indices declined amid profit-taking, rising wholesale inflation and firm crude oil prices.

On Wednesday, the 30-share BSE Sensex fell 251.89 points, or 0.34%, to close at 72,781.89. During the session, it touched a high of 73,195.26 and a low of 72,578.75.

The NSE Nifty 50 dropped 99.25 points, or 0.44%, to settle at 22,622.70.

The previous session’s decline followed a sharp rally, as investors booked profits and assessed the potential effects of higher energy prices and inflationary pressures on the domestic economy.

US Inflation Raises Concerns Over Federal Reserve Rate Hikes

Investor sentiment has been affected by the latest US consumer price inflation data, which showed prices rising faster than expected on an annual basis in September. The figures strengthened concerns that the Federal Reserve could maintain a restrictive monetary policy or consider another interest rate increase before the end of the year.

Higher US interest rates can make American assets more attractive relative to investments in emerging markets. This can put pressure on currencies and encourage foreign investors to reduce their exposure to markets such as India.

Foreign investors have already sold Indian equities for 14 consecutive trading sessions through Wednesday, taking year-to-date outflows to a record $32.7 billion, according to the supplied market report.

Two traders said concerns about persistent US inflation and tighter global financial conditions were weighing on sentiment toward risk-sensitive assets, including emerging-market stocks.

Crude Oil Prices Remain a Key Market Driver

Crude oil prices continued to influence investor sentiment, with Brent crude trading at around $104.50 a barrel. Market participants were assessing supply risks associated with attacks on shipping through the Strait of Hormuz alongside US efforts to reduce petroleum transportation costs by easing sanctions on vessels.

Higher oil prices are a concern for India because the country relies heavily on imported crude oil to meet its energy requirements. A sustained increase in international prices can raise import costs, put pressure on inflation and affect corporate margins across several industries.

Elevated energy costs can also complicate the outlook for monetary policy by increasing inflationary pressures even as policymakers seek to support economic growth.

Wipro Earnings in Focus After IT Sector Rally

Corporate earnings are expected to remain a major focus for domestic investors, with Wipro scheduled to announce its second-quarter results later on Thursday.

The technology sector has attracted attention following HCL Technologies’ better-than-expected earnings earlier in the week, which helped trigger a rally in IT stocks.

Investors will closely examine Wipro’s outlook for discretionary technology spending, the conversion of new deals into revenue and its operating margins. Guidance on client demand and business conditions could influence sentiment across the wider IT sector.

Technology companies have faced questions about spending priorities among clients, making management commentary on future demand particularly important for investors assessing the sector’s earnings outlook.

Jio Platforms IPO Could Divert Market Liquidity

Primary-market activity is another factor investors are watching. Strong demand for new share offerings can draw funds away from existing listed stocks, potentially limiting the near-term upside for the broader equity market.

Jio Platforms announced plans on Wednesday to raise up to $3.2 billion through an initial public offering. If completed at the proposed scale, the offering would be India’s largest IPO to date.

The Mukesh Ambani-founded group is expected to be valued at approximately $108.3 billion. The proposed price band stands at 1,065 rupees to 1,119 rupees per share, equivalent to approximately $11.19 to $11.76.

The planned offering is likely to attract considerable investor attention because of its potential size and the company’s position in India’s corporate landscape. However, significant primary-market fundraising could also affect the availability of funds for purchases in the secondary market.

What Investors Should Watch Next

Thursday’s gains will be tested by several factors, including global interest rate expectations, crude oil movements, foreign investor activity and developments in corporate earnings.

The market will also look for signals from Wipro’s results and management commentary to assess whether the recovery in technology stocks can continue. Meanwhile, concerns about foreign fund outflows and the potential liquidity impact of large IPOs could influence trading across sectors.

Although the Sensex and Nifty opened higher, sustained momentum will depend on whether investors continue buying after the initial gains and how markets respond to developments in global inflation, energy prices and domestic earnings.