Indian Markets Open Higher, Nifty Hits 25,074 Amid Global Gains and Infosys Buyback

Market Update at 09:45 AM: Indian shares opened higher on Friday, tracking global market strength as softer U.S. jobs data overshadowed hotter-than-expected inflation, boosting expectations of Federal Reserve rate cuts.

The Nifty 50 rose 0.28 per cent to 25,074.45, while the BSE Sensex gained 0.26 per cent to 81,758.95 as of 09:15 a.m. IST. Fifteen of the 16 major sectors advanced at the open, reflecting broad-based gains. The domestically focused Small-Cap and Mid-Cap indices rose 0.4 per cent each, indicating positive sentiment among investors looking at both emerging and mid-sized companies.

The IT index gained about 1 per cent, led by a 2 per cent rise in Infosys after the company approved its largest-ever share buyback of USD 2.04 billion at Rs 1,800 per share. The buyback price represents a premium of around 19.2 per cent over the last close, making Infosys a potential multibagger candidate for existing shareholders.

Investor sentiment was further supported by expectations of a U.S. rate cut next week and in the subsequent two meetings. Data showing softness in the U.S. labor market offset a rise in August inflation, making emerging markets like India attractive for foreign portfolio investors (FPIs), as lower Treasury yields and a softer dollar increase the appeal of Large-Cap, mid-cap, and small-cap stocks.

Pre-Market Update at 7:30 AM: On Friday, September 12, the Indian equity market is set for a positive start, tracking strength in global markets. As of 7:12 AM, the GIFT Nifty was trading near 25,180, up 73 points, suggesting a higher opening for the Sensex and Nifty 50.

US ambassador-designate to India Sergio Gor stated that India and the US are “not that far apart” on reaching a trade agreement. Union Minister Piyush Goyal indicated that the first tranche of the agreement is expected to be finalised by November 2025. This development holds importance for both large-cap and mid-cap companies with significant global exposure.

On Thursday, September 11, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 3,472.37 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers for the 13th consecutive session, purchasing shares worth Rs 4,045.54 crore. The equity benchmarks extended their winning streak for the seventh session. The Sensex closed at 81,548.73, up 123.58 points or 0.15 per cent, while the Nifty 50 settled at 25,005.50, rising 32.40 points or 0.13 per cent.

Infosys unveiled its largest-ever buyback programme worth Rs 18,000 crore. The IT major will repurchase 10 crore fully paid-up equity shares, representing up to 2.41 per cent of its total equity share capital, at Rs 1,800 per share. This price carries a 19 per cent premium over the last BSE closing. Such corporate actions often impact investor sentiment, similar to dividends, bonus issues or rights issues, and are closely tracked across small-cap and large-cap segments.

In the US, all three major indices closed at record highs after inflation data releases. The Dow Jones gained 1.36 per cent to 46,108.00, the S&P 500 advanced 0.85 per cent to 6,587.47, and the Nasdaq rose 0.72 per cent to 22,043.08. US CPI rose 0.4 per cent in August, the largest monthly increase since January. Weekly jobless claims increased by 27,000 to 263,000, showing pressure in the labour market.

Gold prices extended gains for the fourth straight week, with spot gold at USD 3,637.06 per ounce, up 0.1 per cent. Bullion recorded a 1.4 per cent weekly rise. Crude oil declined on concerns of oversupply and weak demand. Brent crude fell 0.45 per cent to USD 66.07 a barrel, while WTI slipped 0.5 per cent to USD 62.06. The US dollar index weakened 0.28 per cent to 97.51 against key global currencies amid expectations of further rate cuts.

For today, RBL Bank and Oracle Financial Services Software will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.