Indian Markets Rise Amid Cautious Optimism and Global Uncertainties

On Thursday, Indian stock markets maintained their upward momentum as leading indices opened with gains, reflecting cautious optimism amidst global uncertainties. The investment community remains focused on the ongoing Russia-Ukraine peace negotiations and other current global and domestic happenings.

The Nifty 50 index commenced the trading session at 25,089.65, marking a rise of 37.90 points or 0.15 percent, while the BSE Sensex opened at 82,082.98, up by 225.14 points or 0.28 percent. Despite steady optimism, the influence of global market trends instills caution among investors.

Ajay Bagga, a Banking and Market Expert, stated to ANI that domestic markets have "lots to cheer" with anticipated GST cuts on the horizon. He emphasized the focus on India's self-reliance and its deregulation prospects. He highlighted key market influencers including US Tech sector weakness, complex Ukraine dealings, and expectations from Fed Chair Powell's Jackson Hole speech regarding US monetary policy. He noted rising Japanese and Chinese bond yields indicating tighter global markets, suggesting a possible Fed QE by year's end to manage US Treasury yields.

The broader market showed mixed performance with the Nifty 100 trading nearly flat with a 0.04 percent gain, while the Nifty Midcap 100 fell by 0.09 percent. Conversely, the Nifty Smallcap 100 advanced by 0.27 percent. Among NSE's sectoral indices, Nifty Auto dipped 0.08 percent, Nifty FMCG declined 0.58 percent, Nifty IT fell 0.48 percent, and Nifty Media dropped 0.62 percent. However, Nifty Metal and PSU Bank indices posted minor gains.

Vikram Kasat, Head of Advisory at PL Capital, noted that Nifty ended near the upper gap zone at 25,046 in the previous session. He predicted that breaking and sustaining above 25,046 could drive Nifty towards the crucial 25,250 levels from a medium-term view. On global aspects, Kasat mentioned US markets are languishing after a 30 percent rise since April, showing a three-day losing streak.

He observed that large-cap growth sectors are significantly underperforming compared to small cap and value stocks, although the S&P 500 is just 1 percent shy of record highs, and volatility and credit spreads appear stable, reflecting modest investor concerns. Asian markets exhibited mixed results, with Japan's Nikkei 225 and Hong Kong's Hang Seng slipping while Singapore's Straits Times and South Korea's KOSPI showed improvements.

(With inputs from agencies.)