Indian benchmarks open higher ahead of key data, Nifty Metal hits record high

Stock market news: Indian benchmarks have kicked off the trading day on a positive note, aligning with earlier expectations amid ongoing optimism about corporate earnings. In the pre-market analysis, analysts predicted a higher opening, fueled by the anticipation of a robust results season and cautious monitoring of US inflation data scheduled for later today.

As of 9:25 am, the Sensex has surged by 190.65 points, to 74,874.35, while the Nifty is also on an upward trajectory, up by 58.75 points at 22,701.50.

Nifty Metal surged 1.53 per cent in early trade to hit a record high of 9,031.10 led by Vedanta, Hindustan Zinc, Tata Steel, JSW Steel and others.

Despite minor profit booking observed in the previous session, both the Nifty and S&P BSE Sensex managed to achieve record highs in recent sessions, reinforcing the overall bullish sentiment in the market.

Encouraging financial updates from key companies like HDFC Bank, Tata Steel, and Tata Motors have bolstered investor confidence, setting the stage for a promising earnings season. The anticipation is particularly high as Tata Consultancy Services, a leading IT services company, is scheduled to kickstart the quarterly results season with its earnings report on Friday.

The market is closely tracking the activity of domestic institutional investors (DIIs), who have displayed a strong buying trend in Indian shares, injecting stocks worth billions of rupees into the market. Conversely, foreign institutional investors (FIIs) were observed as net sellers in the previous session.

In global markets, Asian stocks remained subdued, with investors keeping a watchful eye on potential interventions by Japanese authorities to stabilise the Yen's decline. Meanwhile, the overnight performance of US indices, including the Nasdaq and S&P 500, posted modest gains, while the Dow Jones remained relatively unchanged.

All eyes are now turned toward the US inflation data, expected to reveal insights into inflation trends for February. Any deviation from expectations may influence market sentiment and shape future expectations regarding interest rate adjustments.