Nifty, Sensex reverse 4-day fall trend in opening, CPI inflation at 77-month low add to optimism

MUMBAI: Indian equity markets opened higher on Tuesday, staging a mild recovery after four consecutive sessions of losses, the longest losing streak since March. The Nifty 50 index opened at 25,129.70 with a gain of 36.30 points or 0.14 per cent, while the BSE Sensex index surged to 82,338.94, gaining 85.48 points or 0.10 per cent.

The rebound comes as a relief to investors following recent volatility, with the broader market indices showing strength. The Nifty Midcap 100 rose by 0.57 per cent, while the Nifty Smallcap 100 gained 0.82 per cent. The Nifty 100 also opened higher, up by 0.29 per cent, reflecting broad-based buying.

The global backdrop also contributed to the recovery in Indian markets. US markets ended mildly positive. This followed stronger-than-expected economic data from China, where GDP grew by 5.2 per cent in the second quarter, highlighting ongoing economic resilience.

Ajay Bagga, banking and market expert, said, “Indian markets recovered from session lows on Monday in a sign that the 4 day fall, the first since March, may be coming to an end. The broader indices were up in contrast to the negative leader board indices. The global outlook is resilient today. We expect Indian markets to show some strength here on as multiyear low CPI provides more space for future rate cuts and the macro remains, well, resilient”.

In India sectoral indices on the NSE mirrored the positive sentiment, with all major sectors opening in the green. Nifty Media led the gains, opening 1 per cent higher. Nifty Auto climbed 0.68 per cent, Nifty IT added 0.31 per cent, Nifty FMCG rose 0.22%, and Nifty Pharma and Nifty PSU Bank gained 0.22 per cent and 0.28 per cent, respectively. The Nifty Realty index was also up, posting a gain of 0.48 per cent.

Despite ongoing noise around Trump Tariffs, markets appear to be taking the rhetoric in stride. Investor focus has shifted to upcoming earnings from major US banks and economic data releases.

Experts noted that the US Consumer Price Index (CPI) is expected to show a mild upswing in inflation, while the Producer Price Index (PPI), due on Wednesday, may provide insights into supply chain impacts from the new tariffs.

Meanwhile, safe-haven assets like gold and silver witnessed mild declines after posting smart gains in recent days, reflecting improved risk appetite among investors.

Back home, Akshay Chinchalkar, Head of Research at Axis Securities, commented on the market technical and said “The nifty ended down yesterday in what became its fourth straight daily loss. Technically speaking, yesterday’s candle held support at 25000 and then bounced enough to generate a large-sized lower shadow — that adds to evidence that the 25000 area matters. That said, unless and until the index records at least one daily close above 25340, near-term bulls need to remain cautious. This is because a drop into the 24,800-24,900 area still has decent chances”.

In other Asian markets, barring South Korea’s KOSPI, indices were trading with gains. Taiwan’s Weighted Index surged 0.65 per cent, Hong Kong’s Hang Seng was up 0.20 per cent, and Singapore’s Straits Times rose 0.12 per cent at the time of filing this report. (ANI)