Indian stocks open higher amid weak global cues, Nifty above 24,700

MUMBAI: Indian stock indices opened amid the weak global clues and cautious investor sentiment, fuelled by US fiscal uncertainty and India-US trade uncertainties.

At the opening of the session today, the Nifty 50 at the National Stock Exchange (NSE) was at 24,744.25, up about 60.40 points or 0.24 per cent, while the BSE Sensex was at 81,327.60, up 141.17 or 0.17 per cent.

The Nifty Bank opened at 55,060, up by 182.85 points, or 0.33 per cent. The Nifty Midcap 100 also opened in green at 56,249.60, up 66.90 points or 0.33 per cent.

At NSE, the sectoral indices such as Auto, Bank, FMCG, Pharma, and Realty were up by 1.5 per cent in the early hour of trade. The sectoral indices of Consumer Durables and Oil & Gas slipped about 0.7 per cent.

Indian stock indices soared early last week, supported by the news that the conflict between India and Pakistan had de-escalated after the two Armed forces reached an understanding to stop the military actions.

“Given the current premium valuations and delays in the trade deal, we foresee a phase of short-term consolidation, which may lead FIIs to scale back their positions in the domestic market,” said Vinod Nair, Head of Research, Geojit Investments Limited.

“Spike in uncertainty and risk is impacting the market rather unexpectedly. Yesterday’s FII sell figure of Rs 10016 crores is a major reversal of their big buying in May, and if this persists, it has the potential to impact the market,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Another shot in the arm came from the easing of trade wars between the US and China. They had agreed to withdraw their previously announced reciprocal tariffs and counter tariffs for an initial period of 90 days.

On Tuesday, Indian stock indices slumped for the third straight session, possibly due to continued profit booking, while investors awaited further updates on India-US trade deal negotiations.

Market participants this week have their eyes on several key macroeconomic indicators from India, the United States, and China, offering vital clues on global economic momentum and monetary policy outlooks.

In India, market participants will be closely monitoring the HSBC India Manufacturing PMI set to be released on May 22. This index will provide insight into the health of India’s manufacturing sector and broader business sentiment. (ANI)