Mumbai (Maharashtra) [India]: Indian stock markets started the new week on a positive note, with both the Nifty 50 and BSE Sensex indices opening in the green on Monday. However, the gains were moderate, and a sustained rally was not visible.
The Nifty 50 index opened at 22,194.55, gaining 69.85 points or 0.32 per cent, while the BSE Sensex started at 73,427.65, up by 229.55 points or 0.31 per cent.
Market experts indicated that while domestic and global cues are currently favorable, a sustained recovery will depend on a reduction in Foreign Portfolio Investors (FPI) selling, which is anticipated only in the next quarter with improved corporate earnings.
Ajay Bagga, a banking and market expert, told media:
“We expect a shallow rally in Indian markets on the back of global and domestic cues, however, the sharp FPI selling will need to reduce for a sustained recovery to take hold. That will happen once corporate earnings show signs of better momentum in the next quarter.”
He further explained the positive domestic indicators:
“Domestic cues are good for India with an upward revision of the Q2 GDP number and an improved GDP number for Q3 of 6.2 per cent. Hopes are rising that corporate earnings have bottomed out in Q3 and the strong pickup in government capex and general expenditure will help revive the economic momentum.”
Among sectoral indices, all sectors on the NSE opened with gains. Nifty Metal and Nifty Auto saw the highest surge, rising by more than 1 per cent each, while Nifty IT was up by 0.9 per cent. Nifty Bank opened with marginal gains, reflecting a cautious optimism among investors.
On the global front, markets remain cautious as the deadline for the Trump Tariffs on Canada, Mexico, and China approaches on Tuesday. Meanwhile, US markets gained on Friday after the Federal Reserve’s preferred PCE Inflation gauge showed signs of moderation and the Atlanta Fed GDP Now forecast turned negative for the January-March 2025 quarter.
Sunil Gurjar, SEBI-registered research analyst and founder of Alphamojo Financial Services, commented on the current bearish trend in the Indian stock market:
“The Indian stock market is experiencing its longest losing streak in nearly three decades. Small and mid-cap stocks continue to face significant selling pressure. The Nifty 50 has declined by 15.78 per cent from its peak, breaking through all crucial support levels, indicating a strong bearish trend. The index is currently hovering around the 21,800 level, which is acting as a strong support. A breakdown below this level would signal a continuation of the downtrend,” he said.
In the broader Asian markets, Japan’s Nikkei 225 index rose by more than 1.13 per cent, Hong Kong’s Hang Seng index was also up by over 1.13 per cent, while the Taiwan Weighted Index declined by more than 1.62 per cent. South Korea’s KOSPI index was closed for a holiday.
The outlook for Indian markets remains cautious, with analysts keeping a close watch on FPI trends, corporate earnings, and global developments.