Indian Stock Market Rallies Amid Global Uncertainty

The Indian stock market experienced a robust opening on Monday. The BSE Sensex rose by 290 points and the NSE Nifty gained 82 points. Positive movements were reflected in 38 Nifty stocks. Economic experts caution instability due to geopolitical tensions and upcoming US tariff announcements.

The Indian stock market kicked off the week on a high note, with both BSE Sensex and NSE Nifty showcasing substantial gains. On Monday, the BSE Sensex climbed 290.59 points, opening at 74,138.49, while NSE Nifty rose 82.35 points to start at 22,479.55.

Of the Nifty-listed companies, 38 were in green with IndusInd Bank, SBI Life, Bajaj Finserv, Tata Motors, and Larsen & Toubro leading the surge. Meanwhile, Infosys, HCL Tech, Wipro, BPCL, and Britannia registered declines in the early session, amid mixed signals from global markets. Banking analyst Ajay Bagga noted lukewarm reactions to China's efforts to spur domestic consumption, although China's recent industrial and retail data outpaced forecasts, injecting optimism into Asian markets.

Bagga also pointed out uncertainties overshadowing the wider economic landscape, citing potential US economic slowdowns amid policy changes under 'Trump 2.0'. He highlighted the importance of this week's US Fed FOMC meeting, predicting a cautious approach due to ongoing policy ambiguities. Markets are eyeing the Fed's commentary, especially on potential rate cuts, as speculative positioning leans toward three cuts in 2025.

A critical issue affecting global trade is the anticipated Reciprocal Tariffs proclamation by Donald Trump on April 2nd. A successful Indian negotiation over tariff delays or exemptions could boost markets, yet Ajay Bagga warns of impending market volatility. Despite the reduction in FPI sales, this doesn't necessarily imply stability.

Commodities also showed fluctuations; gold briefly breached the USD 3,000 threshold, while oil prices rose following US military action in Yemen. Analysts remain vigilant with China's ongoing stimulus considerations. The volatile financial environment persists as traders observe developments in U.S. trade maneuvers and looming Fed talks, keeping an eye on long-term investment prospects in India due to substantial FII inflows and ongoing trade discussions with global partners. (ANI)

(With inputs from agencies.)