Indian Stock Markets Stage Comeback Amid Global Economic Positivity

In a surprising economic twist, Indian equity markets opened on a strong note on Tuesday, breaking a four-day losing streak—the longest seen since March. The Nifty 50 index recorded a marginal uptick, gaining 36.30 points to reach 25,129.70, while the BSE Sensex index increased by 85.48 points to hit 82,338.94.

This buoyant opening brings relief to investors who have been navigating through recent market volatility. Notably, the broader market indices displayed resilience, with the Nifty Midcap 100 rising by 0.57% and the Nifty Smallcap 100 by 0.82%. The Nifty 100 also experienced an upward shift, reflecting broad-based buying. The recovery aligns with global economic positivity; US markets ended in green, backed by stronger-than-expected GDP growth in China.

Ajay Bagga, a prominent figure in banking and markets, suggests this uptrend marks the end of the recent downturn in Indian markets. He noted, 'The broader indices were up, contrasting the negative leaderboard trends, with global conditions remaining robust.' In India, sectoral indices followed suit, with every major sector showing gains. Notably, Nifty Media led the advancement with a 1% rise.

Nifty Auto, IT, FMCG, Pharma, and PSU Bank sectors also posted gains, with Realty Index climbing 0.48%. Despite geopolitical concerns like Trump's tariffs, markets seem to be brushing off pessimism. Investor sentiment is shifting focus to upcoming earnings of key US banks and crucial economic data releases.

Experts point to the impending release of US Consumer and Producer Price Indices, which may provide additional insights into inflation trends and tariff implications. In contrast, safe-haven assets such as gold and silver saw minor declines as risk appetite improved.

Akshay Chinchalkar, Head of Research at Axis Securities, highlighted the market's technical aspects, emphasizing the recent Nifty movement. Despite ongoing uncertainties, he remains cautiously optimistic about a stabilization. In Asia, except for South Korea's KOSPI, other indices like Taiwan's Weighted Index and Hong Kong's Hang Seng recorded gains, suggesting a wider regional economic recovery.

(With inputs from agencies.)