Indian Markets Set for a Bullish Rally Amid Easing Global Tensions

On the first trading day of the week, Indian stock markets exhibited a steady start, buoyed by favorable global cues and diminishing geopolitical tensions. The Nifty 50 index opened at 25,661.65, reflecting an increase of 23.85 points, or 0.09 percent, while the BSE Sensex experienced a slight drop, opening at 84,027.33, down by 31.57 points or 0.04 percent.

Market experts highlighted several developments contributing to this positive sentiment. The easing of geopolitical tensions and new trade agreements have significantly bolstered market confidence. Additionally, progress on Trump's legislative endeavors in the U.S. Senate is seen as a positive development. Banking and Market Expert Ajay Bagga commented, "Receding geopolitical clouds and tailwinds from trade deals, alongside progress on Trump's policy initiatives, are creating a risk-on rally in the global markets."

Further supporting the market's optimistic outlook are increased oil production expectations from OPEC+ and a weakened U.S. dollar, encouraging capital inflows into emerging markets, including India. Traders are closely monitoring interest rates, with the U.S. OIS curves indicating a high probability of a rate cut in September, followed by another anticipated by December 2025. Recent U.S. Supreme Court decisions, which have limited lower courts' capacity to stall Trump's policy implementations, are also bolstering market sentiment.

Despite the optimism, attention remains on the July 9 tariff deadline, a significant upcoming event. Nonetheless, experts suggest that markets are hopeful, anticipating trade agreements with over a dozen key partners and consensus on a universal 10 percent tariff and sectoral tariffs. Bagga noted, "Although the July 9 tariff deadline is looming, markets are optimistic about potential trade deals with major partners and tariff agreements."

In response to reaching record highs in the S&P 500 and Nasdaq 100, Asian markets climbed during the morning trade. India's trade negotiation team has extended its U.S. visit to finalize a draft trade agreement. Broader indices saw moderate gains, with the Nifty 100 up by 0.05 percent, Nifty Midcap 100 rising by 0.47 percent, and Nifty Smallcap 100 climbing by 0.57 percent.

Sectoral indices reported varied gains, led by Nifty PSU Bank, which increased by over 1 percent. Nifty IT rose by 0.04 percent, Nifty Media advanced by 0.46 percent, Nifty Metals gained 0.09 percent, and Nifty Consumer Durables increased by 0.38 percent. Sunil Gurjar, a SEBI-registered research analyst, remarked, "Nifty's recent breakout from a narrow consolidation phase suggests a potential new all-time high, driven by ongoing FII activity, positive global market conditions, a recent decline in crude oil prices, and seasonal bullish trends in July."

Overall, boosted by strong global cues and progress in trade talks, the Indian stock market appears to be entering early stages of a positive momentum rally. (ANI)

(With inputs from agencies.)