Indian equity markets opened on a positive note on Wednesday, with the BSE Sensex rising by 295 points to reach 82,325.41, while the NSE Nifty 50 climbed 95 points to trade at 25,240.10. This upward movement comes amid mixed global signals and ongoing concerns regarding U.S.-China trade tensions.
Market analysts noted that the early gains were supported by positive cues from Asian markets, which opened higher, and a steady performance from U.S. indices overnight. However, foreign institutional investors (FIIs) continued to sell, offloading shares worth ₹1,509 crore on Tuesday, while domestic institutional investors (DIIs) bought shares worth ₹3,661 crore.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, highlighted that the market faces short-term challenges due to a lack of positive triggers and poor earnings growth. He stated, "The biggest challenge to the market is the poor earnings growth, and this is the fundamental factor behind FII selling." He also mentioned that while the current quarter's results may not reflect the underlying demand, sectors like automobiles and white goods are experiencing strong sales, which could positively impact future results.
In the commodities market, gold prices surged above USD 4,100, nearing record highs, as investors sought safe-haven assets amid geopolitical uncertainties. Silver prices also showed volatility, hovering around USD 50. Manav Modi, an analyst at Motilal Oswal Financial Services, attributed the rise in precious metals to the escalating U.S.-China trade dispute and expectations of potential U.S. interest rate cuts.
U.S. Federal Reserve Chair Jerome Powell's recent comments indicated that while the labor market remains subdued, the economy might be on a firmer trajectory than expected. He emphasized that interest rate decisions would be made on a "meeting-to-meeting" basis, considering the impacts of tariffs on inflation and employment.
As the trading session progresses, market experts anticipate sideways trading influenced by global factors, foreign investment flows, and upcoming corporate results. The overall sentiment remains cautious, but the positive performance of the primary market, including a significant IPO, is expected to bolster investor confidence.
In summary, while the Indian markets opened higher, the ongoing global uncertainties and domestic economic factors will continue to shape market movements in the near term.