Indian Markets Ride Positivity Amid Global Uncertainty

The Indian stock markets opened positively on Tuesday with both indices gaining. Experts suggest that markets may remain under pressure until foreign investments return, influenced by U.S. policies under Trump's administration. Major companies are set to announce FY25 Q2 results. Asian markets report mixed performances.

On Tuesday, Indian stock markets opened on a positive trajectory, with both the Nifty 50 and BSE Sensex indices making early gains. The Nifty 50 climbed 84.50 points, or 0.35%, reaching 24,225.80 points, while the BSE Sensex rose 148.80 points, or 0.19%, to open at 79,644.95.

Market experts highlighted concerns about persisting pressures until foreign investments return, largely hinging on U.S. policy directions under Trump's administration. Ajay Bagga, a banking and market expert, remarked on the volatility and range-bound nature of Indian markets, predicting stability only with renewed emerging market flows driven by geopolitical breakthroughs or other global factors. The U.S. markets thrive from economic growth and attract investments, while emerging markets face outflows due to a robust U.S. dollar. China is strategically reserving fiscal measures for next year pending Trump Tariff announcements.

Among the National Stock Exchange sectoral indices, all except Nifty Pharma saw gains, with Nifty IT leading the charge with a 0.60% uptick. Several companies, including Hyundai Motors, Bosch, and GIC India, are poised to release their second-quarter financial results for FY25. Notably, recent Bank Nifty performance has outpaced the general Nifty index, a trend likely to persist according to Akshay Chinchalkar of Axis Securities, supported by index options positioning insights. Meanwhile, in broader Asian markets, all major indices except Japan's Nikkei 225 saw declines, with Taiwan's Weighted Index, South Korea's KOSPI, and Hong Kong's Hang Seng all dropping over 1%.

(With inputs from agencies.)