Markets Eye Gains as India-UK FTA Looms
Domestic stock markets remained stable Thursday as investors awaited the formalization of the India-UK Free Trade Agreement (FTA). The optimism around this development was bolstered by recent global trade deals, such as the US-Japan agreement. Experts believe a potential US-India trade deal could further boost market sentiment.
- Country:
- India
In anticipation of a key trade agreement between India and the UK, Indian stock markets opened flat on Thursday, reflecting a tentatively optimistic investor sentiment. The expected formalization of the Free Trade Agreement between the two nations is seen as a potential catalyst for market positivity, mirroring similar global trade movements like the recent US-Japan deal.
The Nifty 50 and BSE Sensex indices showed modest gains, reflecting cautious investor optimism. Market specialists suggest a potential rally if further trade developments occur before August 1. Ajay Bagga, a renowned market expert, highlighted the importance of the India-UK FTA and a prospective US-India trade agreement, noting the significant short positions held by Foreign Portfolio Investors (FPIs).
Global markets are experiencing a 'risk-on' sentiment following the US-Japan trade deal, with markets across Asia, Europe, and the US responding positively. Future trade announcements, particularly before the upcoming US-China summit in Stockholm, might shape market trajectories further. Meanwhile, various NSE sectoral indices displayed mixed performances, reflecting varied investor outlooks across different market segments.
(With inputs from agencies.)
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