Mumbai (Maharashtra) [India]: Indian stock markets opened on a positive note on Wednesday, defying pressure seen in global markets, including the US and Europe.
The Nifty 50 index opened at 22,536.35, gaining 38.45 points or 0.17%, while the BSE Sensex began trading at 74,270.81, up by 168.49 points or 0.23%.
On Tuesday, U.S. President Donald Trump reassured investors that he does not foresee a risk of a U.S. recession, which helped ease concerns in global markets. While this provided some relief, experts noted that investors remain cautious about the market’s future direction.
Financial experts highlighted that portfolio managers are adopting safer strategies by holding additional cash reserves, reducing exposure to overvalued stocks, and diversifying portfolios to minimize risks tied to Trump’s trade policies.
Ajay Bagga, Banking and Market Expert, told ANI:
“Yesterday, Trump conceded to the media that he does not see a threat of a US recession. Markets got reassured somewhat and rallied into the close, reducing their Tuesday cuts. How do portfolio managers manage in these uncertain times? By keeping some powder dry, by getting out of high valuation narrative stocks and by diversifying away the Trump Tariff risk. Hopes of a Trump Put have been belied as the Pain Threshold of Trump 2.0 is much higher than Trump 1.0. More market falls are acceptable to President Trump this time around.”
In a further sign of investor caution, U.S. money market funds have now surpassed USD 7 trillion in assets under management, reflecting a shift toward safer investments like gold, silver, and short-term U.S. Treasuries.
In the Indian markets, most sectors witnessed gains, except for Nifty IT, which declined by 1.14% due to weak sentiment from U.S. markets. Out of the Nifty 50 stocks, 32 opened in green, while 16 saw declines, indicating overall market strength.
Akshay Chinchalkar, Head of Research at Axis Securities, commented:
“The Nifty’s recovery yesterday from the opening drop clearly shows that bulls are in play. Although the rebound traced a bullish ‘piercing line’ formation, bulls will be emboldened further only if Monday’s high of 22,677 breaks, with a first objective in the 22,720 – 22,798 area. For this to happen though, we need to hold above support at 22,245. Anything under that, and critical support at 22,117 will most likely be tested. For now, bulls have a slight edge.”
Meanwhile, Asian markets performed well on Wednesday:
- Taiwan’s Weighted Index surged by 1.43%
- South Korea’s KOSPI gained 1.47%
- Indonesia’s Jakarta Composite rose 1.24%
- Hong Kong’s Hang Seng Index declined slightly by 0.13%