Equity markets opened higher on Thursday as news of potential peace negotiations between US President Donald Trump and Russian President Putin over the Ukraine conflict boosted sentiment, while domestic inflation data showed encouraging signs.
The Sensex opened at 76,201.10 compared to its previous close of 76,171.08 and is currently trading at 76,415.56, up by 244.48 points or 0.32 per cent. Similarly, the Nifty opened at 23,055.75, against its previous close of 23,045.25, and is now at 23,125.20, gaining 79.95 points or 0.35 per cent. Metal stocks led the gains, with Tata Steel emerging as the top gainer, up 2.55 per cent.
“The market is likely to rally on positive news expected from the Trump-Modi talks today. Some agreement is likely between the US and India on reciprocal tariffs,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
India’s retail inflation dropped to a five-month low of 4.31 per cent in January from 5.22 per cent in December 2024, moving closer to the Reserve Bank of India’s medium-term target of 4 per cent. “The decline in inflation trajectory justifies the MPC’s rate cut this month and creates favourable conditions for another 25 bps rate cut in April,” Vijayakumar added.
Global markets showed mixed trends after US consumer prices rose more than expected in January. The US CPI increased 0.5 per cent last month, following a 0.4 per cent rise in December, raising concerns about potential delays in Federal Reserve interest rate cuts.
Gold prices remained elevated near record highs above $2,900 per ounce as traders weighed inflation data against rising haven demand. Oil prices dropped over 2 per cent to below $75 per barrel following news of potential peace talks over Ukraine.
Institutional activity showed continued selling pressure from foreign investors. Foreign Institutional Investors (FIIs) remained net sellers for the sixth consecutive session on February 12, offloading equities worth ₹4,969 crore, while Domestic Institutional Investors bought equities worth ₹5,929 crore.
Among other gainers, Cipla rose 2.26 per cent, followed by Bajaj Finserv at 2.13 per cent and Kotak Bank at 1.90 per cent. The top losers included Tech Mahindra, down 1.05 per cent, and Tata Consumer, which fell 0.58 per cent.
Market analysts maintain a cautious stance despite the positive opening. “The current market landscape presents significant challenges, characterised by volatility and uncertainty,” said Sameet Chavan, Head, Research, at Angel One, suggesting that the 22,900-22,800 range could act as a support zone.
Equity mutual fund inflows showed resilience, with AMFI data indicating inflows of ₹39,688 crore in January, despite market volatility. SIP contributions remained strong at ₹26,400 crore, compared to ₹26,459 crore in December.