Indian stock indices opened on a positive note on Tuesday morning, brushing aside weak global cues and ongoing investor caution amid persistent uncertainty over United States fiscal policy and unresolved India-US trade negotiations.
At the opening bell, the Nifty 50 at the National Stock Exchange (NSE) stood at 24,744.25, up by 60.40 points or 0.24 per cent, while the BSE Sensex rose 141.17 points or 0.17 per cent to reach 81,327.60.
The Nifty Bank index also posted early gains, opening at 55,060, a rise of 182.85 points or 0.33 per cent, while the Nifty Midcap 100 began the session at 56,249.60, marking a 66.90-point or 0.33 per cent increase.
Early trade saw positive movement in key sectoral indices such as Auto, Bank, FMCG, Pharma, and Realty, all up by nearly 1.5 per cent. However, Consumer Durables and Oil & Gas sectors dipped, shedding approximately 0.7 per cent each.
Last week, market sentiment received a temporary boost following reports of de-escalation along the India-Pakistan border, as the two nations’ armed forces agreed to a cessation of hostilities.
However, analysts remained cautious about short-term prospects.
Also read: Sensex, Nifty take a tumble owing to weak global cues
“Given the current premium valuations and delays in the trade deal, we foresee a phase of short-term consolidation, which may lead FIIs to scale back their positions in the domestic market,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Spike in uncertainty and risk is impacting the market rather unexpectedly. Yesterday's FII sell figure of ₹10,016 crores is a major reversal of their big buying in May, and if this persists, it has the potential to impact the market,” warned Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The easing of tensions between the United States and China, who have temporarily agreed to withdraw reciprocal tariffs for a 90-day period, also provided a modicum of relief to global markets, including India.
On Tuesday, Indian stock indices had fallen for the third consecutive session, with investors reportedly engaging in profit booking, awaiting further clarity on India-US trade negotiations.
Investors are also watching several crucial macroeconomic indicators due this week from India, the United States, and China, expected to influence market direction and central bank strategies.
In India, focus remains on the HSBC India Manufacturing Purchasing Managers' Index (PMI), due to be released on 22 May, which is anticipated to offer fresh insights into the country’s industrial performance and business sentiment.
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