MUMBAI: Indian markets opened near an all-time high on Tuesday, however, investors are in a wait-and-watch mode before the Fed rate cut announcements.
Nifty 50 index opened at 25,416.90 points with a surge of 33 points or 0.13 per cent while the BSE Sensex gained 95 points to open at 83,084.63.
Both the indices are near their all-time highs of 25445.70 and 83,184.34. Indian markets are showing very strong support and making new highs following the surge in Foreign investment last week.
“Markets are in wait and watch mode with a big Fed move coming up on Wednesday night India time. The market is split on whether it will be a 25 or 50 bps cut by the Fed to start its rate cutting cycle. The economic data allows the Fed to do 25 bps, but a majority of the market feels the Fed has held rates too high for too long” said Ajay Bagga, Banking and Market Expert.
He further said “Indian markets saw a net outflow from FIIs after 6 days of strong inflows. We expect Indian markets to track global cues as the Fed move is keenly watched. However, the trend is clear that as rate cuts happen in the US, the Dollar weakens and flows into EMs pick up. That will be a positive to watch out for the Indian markets going ahead”.
In the broad market indices on NSE, all indices opened in green with a marginal surge while in sectoral indices the Nifty IT opened in negative with a marginal dip. Bajaj Housing Finance share opened in upper circuit, the share is trading at Rs 178 at the time of filing the report.
Globally markets showed mixed trends, the Asia Dow declined by 0.34 per cent on Tuesday, Japan’s Nikkei 225 fell by 0.60 per cent, while South Korea’s KOSPI rose by 0.95 per cent and China’s Shanghai Composite gained 0.14 per cent.
In the U.S. markets on Monday, the S&P 500 increased by 0.13 per cent to 5,633.09, the Dow Jones rose 0.55 per cent to 41,622.08, and the Nasdaq Composite dropped 0.52 per cent to 17,592.13, reflecting mixed investor sentiment amid speculation on potential U.S. Federal Reserve rate cuts. (ANI)