Indian Stock Markets Steady Amid Mixed Investor Sentiment and Easing Inflation
Indian stock indices closed almost unchanged on Wednesday amid a cautious investor approach despite positive signals such as declining inflation and promising Q1FY26 corporate earnings. Key performers included M&M and Wipro, while Nifty Metal and Healthcare faced setbacks. A potential India-US trade agreement looms over investor decisions.
- Country:
- India
On Wednesday, Indian stock markets displayed little movement, closing mostly flat as investors balanced optimism with caution. Contributing to the mixed sentiment were positive indicators, such as a decline in retail inflation and upbeat corporate earnings forecasts for Q1FY26. The Sensex gained 52.73 points, landing at 82,623.64, while the Nifty rose by 6.4 points to 25,202.20.
"India's macroeconomic conditions remain robust, buoyed by easing inflation, reduced interest rates, a favorable monsoon season, and lower oil prices," noted Vinod Nair, Head of Research at Geojit Investments Limited. Key gainers included M&M, Wipro, and Tech Mahindra, whereas Shri Ram Finance, Eternal, and Sun Pharma were among the laggards. Sector-wise, Nifty PSU Bank and Nifty Media indices emerged as top performers, while Nifty Metal and Nifty Healthcare indices ended the day in the red.
Retail inflation in India reached a new six-year low in June, further supporting market sentiment. Of the 3,018 stocks that traded, 1,663 saw gains, while 1,271 declined, with 84 remaining unchanged. "The market breadth was slightly positive, with the advance-decline ratio indicating a cautious optimism," stated Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities. Additionally, investors are closely monitoring the progress of a potential India-US Bilateral Trade Agreement, which could significantly impact market dynamics.
(With inputs from agencies.)
Google News