Sensex Shifts Slightly Up Amid Global Market Caution

The stock market opened with moderate gains, reflecting global market concerns. Despite a slight rise in benchmark indices, mixed trends among companies highlight investor caution. Market expert Ajay Bagga noted the challenges of declining global asset manager profits and ongoing FII outflows countered by strong DII investments in India.

The stock market opened on a cautious note on Tuesday, showing minor gains amidst weak global sentiment. Benchmark indices demonstrated a modest increase, with the Sensex rising by 183.87 points, initiating at 81,335.14, and the Nifty advancing by 31.55 points to start at 24,812.65.

Despite the upward opening, Nifty displayed mixed trends, with advancing companies such as Shriram Finance, Tech Mahindra, and ICICI Bank contrasted by declines in Tata Steel, BEL, and others. Ajay Bagga, a market expert, highlighted global challenges with declining asset manager profitability despite past growth, affecting investor outlook.

Bagga emphasized continued strong domestic investments against foreign outflows, noting the slowdown in private consumption growth impacting India's GDP. He attributed these factors to a potential downward drift in corporate earnings and advised investors to approach fund allocation with caution given current high valuations and economic uncertainties.

(With inputs from agencies.)