Indian Markets Poised for Bullish Thursday as Global Tailwinds Support Recovery

India’s stock benchmarks are set to open on a strong note Thursday, underpinned by a confluence of positive factors spanning monetary policy expectations, robust Asian market performance, and overnight strength on Wall Street.

Yesterday’s Strong Close Sets Stage for Further Gains

Wednesday’s trading session delivered encouraging results for Indian equities, with both the BSE Sensex and NSE Nifty50 recording substantial gains. The Sensex surged 1,022.50 points—a 1.21% increase—to settle at 85,609.51, while the broader Nifty index climbed 320.50 points, or 1.24%, reaching 26,205.30. This rally was fueled by broad-based buying across sectors, driven primarily by weakening U.S. economic data that reinforced expectations for Federal Reserve rate reductions in the coming months.

Global Market Dynamics Supporting Sentiment

U.S. stock indices extended their winning streak to a fourth consecutive session on Wednesday. The Dow Jones advanced 314.67 points (0.7%) to 47,427.12, while the Nasdaq jumped 189.10 points (0.8%) to 23,214.69. The S&P 500 added 46.73 points (0.7%) to close at 6,812.61. Dovish commentary from Federal Reserve officials bolstered investor confidence about the interest rate outlook. According to CME Group’s FedWatch Tool, market participants now assign an 82.9% probability to a quarter-point rate cut next month—a dramatic shift from just 30.1% probability a week earlier.

Tailwinds from Commodity and Foreign Investment Markets

Declining crude oil prices across global markets provided additional support, aided by reports of progress in U.S.-mediated peace negotiations between Russia and Ukraine. Simultaneously, foreign institutional investors maintained their buying appetite, with exchange data reflecting consistent FII inflows that further bolstered market sentiment.

Company-Specific Catalysts in Focus

Several corporate developments are likely to attract investor attention on Thursday. Whirlpool shares will draw scrutiny following reports that the company’s promoter intends to divest a 7.5% stake via block transaction at a floor price of Rs 1,030 per share. Oberoi Realty announced execution of a redevelopment agreement for a substantial land parcel on Mumbai’s Nepean Sea Road, signaling continued momentum in the real estate sector. Meanwhile, Salasar Techno Engineering secured two contracts collectively valued at approximately Rs 695 crore from Rail Vikas Nigam Ltd., demonstrating infrastructure sector resilience.

Outlook and Cautions

While the backdrop appears supportive for continued positive thursday trading momentum, investors should remain mindful of potential headwinds. Negotiations around a prospective U.S.-India trade agreement introduce a layer of uncertainty that could temper the market’s upside potential. Nevertheless, the combination of GIFT Nifty futures signaling strength, steady regional market performance, and renewed optimism about global monetary policy easing suggests Indian equities are positioned for a constructive session.