Indian Markets See Slight Rebound Amid Continued Global and Local Challenges
Indian stock markets opened with marginal gains after being oversold last week. Experts caution the rebound might not be sustained without improved global sentiment and policy clarity. The RBI's upcoming policy meeting is in focus as markets navigate international tensions and economic data revisions.
- Country:
- India
On Monday, Indian stock markets opened with a slight rebound, following a week of oversold conditions despite the ongoing factors such as foreign portfolio investor outflows and weak global indicators. The NIFTY 50 index rose to 24,596.05, showing a modest increase of 30.70 points or 0.12%, while the BSE Sensex saw a gain of 165.92 points or 0.21% at the outset.
Market experts have attributed the initial gains to a technical bounce-back after Indian markets reached extremely oversold levels. However, caution remains as the recovery could be short-lived unless bolstered by shifts in global sentiment. Ajay Bagga, an expert in banking and markets, noted the challenges including high US tariffs on exports, FPI outflows, and earnings below expectations.
The focus now shifts to the Reserve Bank of India's upcoming policy meeting later this week, which might impact future market trends. The global market sentiment took a hit following US job data revealing slower growth, prompting a sharp decline in the 2-year US Treasury yield. The implications of geopolitical tensions and US economic data revisions continue to weigh heavily on market expectations.
(With inputs from agencies.)
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