Indian Stock Markets Rebound Amid Ceasefire Developments

In a positive turn for Indian stock markets, indices rebounded on Wednesday after a significant drop on Tuesday. The BSE Sensex opened at 81,278.49, climbing 130.27 points, equivalent to a 0.16 percent increase. Meanwhile, the Nifty 50 rose by 35.50 points, a 0.14 percent gain, settling at 24,613.80.

Leading the gainers in early trading were Tata Steel, Bharti Airtel, Shriram Finance, Tech Mahindra, and JSW Steel. Conversely, Tata Motors, Cipla, Hero MotoCorp, Asian Paints, and Eicher Motors faced losses. The previous session saw profit booking by investors following the maintainance of normalcy with a ceasefire between India and Pakistan.

Although equity indices had taken a hit on Tuesday, experts point to foreign portfolio investment outflows in futures as an area of concern. Market analyst Ajay Bagga noted the aftermath of Monday's surge, driven by ceasefire news, indicating net FPI outflow in cash and futures markets. However, optimism prevails with positive consumer price index data expected to bolster buying sentiment.

Domestic retail investors have countered the selling pressure, taking net positive positions in futures, while domestic institutional investors invested heavily. As markets stabilize, Bernstein noted that India's equity market is reverting to regular patterns after a precarious weekend. Their analysis suggests India's market fundamentals remain strong, awaiting further positive momentum.

Observing market dynamics, Sundar Kewat of Ashika Institutional Equity remarked on the sustained focus on geopolitical tensions, which continue to elicit a cautious market response despite the ceasefire.

(With inputs from agencies.)