Indian Markets Remain Upbeat Amid US Dollar Slump and Global Uncertainty

On Tuesday, Indian stock markets managed to sustain their upward trend, opening on a positive note, with key benchmark indices posting early gains. Market observers, however, are maintaining a cautious outlook as the financial world eagerly awaits more clarity on significant global developments, particularly the Trump administration's proposed tax cuts bill in the US.

The Nifty 50 index saw an opening rise to 25,551.35, marking an increase of 34.30 points, or 0.13 percent. Similarly, the BSE Sensex registered a gain of 79.20 points, or 0.09 percent, reaching an opening level of 83,685.66. Despite these initial gains, the market sentiment remains watchful. Ajay Bagga, a Banking and Market Expert, highlighted to ANI that Indian markets are experiencing a consolidating phase due to Monday's foreign portfolio investor sales and are closely monitoring global economic cues.

Key global factors impacting market sentiment include a sharp decline in the US dollar. The dollar index, reflecting the greenback's performance against six major currencies, has fallen over 10 percent in early 2025, marking its worst start since 1973. Bagga elucidated that debates over the Trump 2.0 tax cuts and deregulation bill in the US Senate and the upcoming June US Non-Farm Payrolls report remain pivotal market-moving factors. Alongside, the announcement of anticipated trade deals with major partners could influence market movements. Broader market indices showed varied performance, while specific sectoral indices such as Nifty Realty surged, yet others like Nifty Auto saw minor declines. Experts emphasize that as global cues remain indeterminate, Indian markets aim for a cautious, range-bound trading approach until more definitive information surfaces.

(With inputs from agencies.)