According to market analysts, investors are encouraged by the prospect of progress in the trade agreement between the United States and India as well as a rate reduction by the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC).
Despite conflicting global cues, Indian stock indices began higher on Thursday.
According to market analysts, investors are encouraged by the prospect of progress in the trade agreement between the United States and India as well as a rate reduction by the Reserve Bank of India’s Monetary Policy Committee.
The National Stock Exchange’s Nifty 50 was up 8.65 points, or 0.04 cent, at 24,628.85 at the start of today’s trading session, while the Sensex was up 26.22 points, or 0.03 percent, at 81,024.47.
The Nifty saw significant gains in the stocks of Dr. Reddy’s Labs, Eternal, Shriram Finance, Power Grid Corp, and Cipla, while Tata Consumer, Nestle, Titan Company, Axis Bank, and SBI Life Insurance saw losses.
At the start, the NSE’s sectoral indices are all trading higher. The smallcap index was up 0.6% while the midcap index was up 0.3% on the BSE.
The outcome of Friday’s RBI MPC meeting is being carefully anticipated, and Indian markets are likewise sideways. The RBI’s lenient approach is expected to result in a 25 basis point rate drop, according to banking and market expert Ajay Bagga.
For the second consecutive month in May, foreign portfolio investors have become net sellers in Indian stock markets, which is good news for the financial markets. Following a steep decline, FPIs fueled the most recent stock market bull run.
India is the top destination for inflows, according to May worldwide foreign portfolio investment flow figures. Out of a total EM ex-China inflow of USD 13.3 billion in May, Taiwan, India [India], and Brazil topped the inflows with 2.3 billion dollars.
According to YTD FPI flows, outflows from India amount $9.9 billion, out of a $40 billion outflow from all of EM outside of China. There are expectations for a slow recovery in FPI flows to the EMs due to the May inflows and the 9% year-to-date decline in the US dollar index. The FPI flow turnaround could help India, which accounted for about 25% of inflows so far this year,” he continued.
Seeing how the market changes, “The Nifty ended higher yesterday and the India vix fell nearly 5%, which bulls would have liked to see,” continued Akshay Chinchalkar, Head of Research at Axis Securities. Optimism is maintained because 24462 is still intact. The market will probably fall to major support at -23800 if this level breaks. The range of short-term resistance is 24760–24882. There are tailwinds for stock bulls worldwide.
Investors are now anticipating more information regarding the negotiations for a trade deal between the US and India as well as the RBI’s monetary policy decision on Friday.
Over the past few weeks, Indian stock markets have outperformed global markets, despite the global markets’ ongoing volatility due to potential impending reciprocal tariffs from the US. The local equities indices were also partly boosted by India’s acceptable inflation rate.
