Indian markets open higher amid global AI rally, focus on Trump-Xi summit and FPI outflows

NEW DELHI: Indian equity markets opened on a positive note on Thursday, tracking gains in Asian peers and continued momentum in global AI-linked stocks, even as sustained foreign portfolio investor (FPI) outflows and geopolitical uncertainties kept investors cautious. The market is also closely monitoring the outcomes of the Trump-Xi Summit, with a focus on tariffs, technology transfer, trade balance and export controls between the United States and China.

The BSE Sensex rose by 417.55 points or 0.56 per cent to stand at 75,026.53 points in early trade. Simultaneously, the NSE Nifty 50 gained 117.65 points, or 0.50 per cent, to reach 23,530.25 points. The positive opening follows a marginal recovery in the previous session, where the market managed to halt a downward streak.

Ajay Bagga, a banking and market expert, expects the markets to remain under pressure despite the positive opening. “Indian markets continue their underperformance with sustained FPI outflows putting a ceiling on Indian stocks. Focus will shift back to an Iran peace deal during the Trump-Xi meet. For the next two days, markets are expected to be sideways with a negative bias”, he said.

Highlighting the global cues supporting markets, Bagga noted, “The focus is on the outcomes of the Trump-Xi Summit. The agenda is Tariffs, Technology (from US to China), Trade balance and Export controls (China to US). Markets remain in AI momentum, with large semiconductor supply chain-related stocks driving US and Asian markets. The rest of the sectors are underperforming but the heavy lifting by the semiconductor sector and related sectors like power, renewables and metal suppliers into data centers driving AI is keeping markets aloft”.

Rajesh Palviya, Head of Research, Axis Direct, said, “The overall bias is cautiously optimistic, but bulls need a daily close above 23,550 to continue the upward move; 23,200 remains a critical support level, with a break possibly leading to 23,000”.

Addressing the outlook for the trading session, Palviya noted, “The Nifty’s short-term setup is in an oversold zone, so a pullback cannot be ruled out. Volatility may continue until geopolitical uncertainties ease. A sector- and stock-specific approach appears essential for actionable trades”.

On the sectoral front, Nifty Pharma led the gains with a rise of 1.21 per cent to 24,184.80 points, followed by the Nifty Healthcare Index, which advanced 1.14 per cent to 15,494.35 points. Other sectors showing strength included Nifty Metal, up 0.77 per cent, while Nifty PSU Bank and Nifty Auto gained 0.65 per cent each.

The momentum in the domestic market was mirrored by several Asian peers. At the time of filing this report, the Nikkei 225 was up 0.21 per cent, while the Hang Seng index gained 0.53 per cent. The Taiwan Weighted and KOSPI indices also traded higher by 0.55 per cent and 0.42 per cent, respectively. However, the Shanghai Composite and Jakarta Composite traded in the red.

In the commodities market, price movements remained mixed. Brent crude traded at $106.12, up 0.46 per cent, while crude oil stood at $101.66, gaining 0.64 per cent. Gold, however, declined marginally by 0.20 per cent to trade at $4,677.00. (ANI)