Global Optimism Fuels Fourth Day of Stock Gains

Domestic stock indices experienced gains for the fourth consecutive session on Friday, stimulated by favorable global developments such as the possibility of extending the July 9 tariff deadline. A White House indication of a potential extension, coupled with President Donald Trump's promise of a 'great deal' with India, lifted investor confidence.

The Nifty 50 opened at 25,576.65, marking a rise of 27.65 points or 0.11%, while the BSE Sensex began its session higher at 83,774.45, an increase of 18.58 points or 0.02%. Banking and Market Expert Ajay Bagga commented to ANI that Indian markets are benefitting from supportive global cues, including a likely delay of the July 9th tariff deadline, as suggested by a White House spokesperson. Additionally, the US has announced its intent to codify its China tariff agreement, though confirmation from China is still pending.

In broader market developments, the Nifty Midcap 100 rose by 0.42%, and the Nifty Smallcap 100 increased by 0.41%. Nifty Metal led sectoral growth with a rally exceeding 1%, and Nifty PSU Bank surged by 1.16% at opening. Gains were also evident in Nifty Auto, Nifty IT, and Nifty Pharma by 0.37%, 0.36%, and 0.28%, respectively.

An Indian delegation is in the US negotiating a trade deal, although the Bilateral Trade Agreement (BTA) could take another six months. With strong domestic indicators, a proactive RBI, favorable monsoon, all-time highs in US markets, and a weakening dollar, emerging markets like India stand to gain. Foreign institutional investors returning could infuse additional liquidity into the markets.

Bagga noted potential for reaching September 2024's all-time highs within two months. Akshay Chinchalkar of Axis Securities highlighted a recent inside day pattern indicating an advancing trend, and projected near-term resistance in the 25700-25800 zone, with current support at 25000 prompting bullish sentiment.

Meanwhile, Asian markets exhibited mixed performance in early trading. Japan's Nikkei 225 surged 1.7%, Hong Kong's Hang Seng remained flat, South Korea's KOSPI fell by 0.94%, and Taiwan's Weighted Index decreased by 0.07%.

(With inputs from agencies.)