Stock Market Update: Sensex gains as rupee hits 2-month high; banking stocks remain in focus (Img: Pinterest)
Mumbai: Indian stock markets opened on a positive note on Thursday as investor sentiment improved after the previous session’s decline. The benchmark indices witnessed early gains, supported by strong rupee movement, improved liquidity conditions and positive global cues.
At 9:17 AM, the BSE Sensex gained 304 points or 0.40% to trade at 76,874.37, while the Nifty 50 climbed 63 points or 0.26% to 23,977.80.
The Indian rupee opened strongly against the US dollar, gaining 67 paise from its previous closing level. The currency started trading at 94.30 per dollar compared to Wednesday’s close of 94.97.
Market experts believe easing US bond yields and strong foreign currency inflows have improved confidence in the domestic currency.
A major factor supporting the market mood is the significant mobilisation of funds through banking channels. Around $136 billion was raised under concessional swap facilities, including large participation through the FCNR(B) scheme.
Analysts believe the inflows could help stabilise the rupee and attract further foreign institutional investment (FII) into Indian equities.
With liquidity conditions improving, banking stocks remained in focus during the market rally.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said improving growth prospects, stable currency movement and continued foreign investor interest could support Indian markets.
He added that strong FCNR(B) mobilisation may also help banks improve margins, making the banking sector an important area to watch.
