Indian stock markets opened on a positive note despite rising tensions between India and Pakistan
Mumbai: Despite the ongoing escalation of tensions between India and Pakistan, Indian financial markets began the day Thursday on a high note. The benchmark Nifty 50 index gained 42.30 points, or 0.17 percent, to start at 24,289 today. The BSE Sensex began the day at 79,830.15, indicating a slight increase of 28.72 points. Despite the persistent geopolitical worries, market analysts observed that foreign portfolio investor (FPI) inflows into India are still robust.
They did, however, caution that a significant sell-off in the markets may result from any military conflict between the two neighbors.
After seven days of steady growth, Indian markets saw a momentary lull, according to banking and market expert Ajay Bagga, who spoke to the media report. FPIs continue to be buyers, supporting the market’s surge. Indian markets are being held back by the lingering effects of Indian retribution against Pakistan for the terrorist atrocity in Kashmir on the 22nd.
Additionally, he said, “Today is pointing to a strong gap up open, and this should sustain with FPIs piling back every day.” We may be a few days away from the occurrence, considering that India’s two prior retaliation acts against terrorists funded by Pakistan occurred ten and fifteen days after the terrorist strikes, respectively. In the aftermath, the Karachi exchange also fell 2%, which is increasing market anxiety.
Due to rising expectations of tariff negotiation progress, market confidence has strengthened globally. For the third day in a row, the US markets have seen advances. Market players think that we are now over the peak tariff and uncertainty period.
Market confidence is being further bolstered by the strong expectations that nations would shortly announce new tariff deals with the US.
Additionally, a “Trump Put” is being discussed as a safeguard for international markets, particularly as the month of April, which is Liberation Day, draws to a close.
Today, a number of significant Indian businesses are expected to release their Q4 financial results. Reliance Industries, Maruti Suzuki India, Hindustan Zinc, Oracle Financial Services Software, Lloyds Metals and Energy, Motilal Oswal Financial Services, LT Finance, Bank of Maharashtra, Poonawalla Fincorp, Tata Technologies, Dr. Lal PathLabs, and Shriram Finance are a few of these.
“The trend is firmly bullish as long as the 24120 level is holding,” said Akshay Chinchalkar, Head of Research at Axis Securities. 24500 is still a significant resistance. Another indication of confidence is the fact that FII net short posture in index futures is now at its lowest level since October 7, when they went net short for the first time since the record top.
At the time of this article, Asian markets were trading in a positive manner. South Korea’s KOSPI increased by more than 1%, Taiwan’s Weighted Index increased by more than 2%, Hong Kong’s Hang Seng index increased by more than 1.4%, and Japan’s Nikkei 225 index increased by more than 1.3%.
