Indian markets open flat on a positive note, reality index leads the gains

MUMBAI: Indian benchmark indices opened on a flat yet positive note on Monday, tracking cues from the US markets, which also ended flat amid ongoing concerns over tariff wars.

The market mood remained cautious globally as trade tensions and fiscal issues in the US cast a shadow on investor sentiment.

The Nifty 50 index opened at 24,996.20, gaining 50.75 points or 0.20 per cent. The BSE Sensex also opened with a marginal gain of 47.73 points at 82,107.15, reflecting a 0.06 per cent rise. Despite the subdued tone, the broader market showed resilience with most sectoral indices opening in the green.

Experts noted that pressure in the US markets is evident, largely due to the lingering effects of tariff wars under President Trump’s administration.

The tariff policy, which includes a minimum of 10 per cent duty on almost all imports into the US, has raised concerns about the future of global trade. The impact of this trade policy has been felt across financial markets worldwide, including India.

Ajay Bagga Banking and Market expert, told ANI, “EMs (Emerging Markets) will not be decoupled from a US slowdown, though a slow recalibration from US assets to Europe, Japan and EMs is definitely on. Indian investors have to hope that the US manages to stay on the course of a soft landing or a no landing, and US exceptionalism stays a core theme, despite the headwinds of tariffs and “living beyond their means” coming home to roost.”

Adding to the pressure, the White House and the US Treasury strongly opposed Moody’s recent downgrade of the US’s “AAA” credit rating.
Despite these developments, US stock futures remained weak throughout the Asian and European trading sessions but managed to recover and close in green for the sixth consecutive day.

Notably, yields on US 30-year Treasury bonds briefly crossed the 5 per cent mark but ended the day below that level. The US dollar also weakened, which some experts believe was expected in such an economic environment.

Another major concern for the US economy highlighted by the experts is the wide fiscal deficit, which continues to grow amid the Trump administration’s tax cuts. Analysts point out that this deficit is being financed by what is often referred to as the “exorbitant privilege” of the US dollar being the preferred global reserve currency.

Back home, all sectoral indices on the National Stock Exchange opened in the green.

The Nifty Realty index led the gains, rising by 1.43 per cent. Nifty IT gained 0.65 per cent, FMCG rose by 0.4 per cent, pharma added 0.36 per cent, PSU Bank shares climbed 0.72 per cent, and Nifty Auto advanced by 0.24 per cent.

The Bank Nifty showed a modest rise of 0.4 per cent, while the Nifty Next 50 index was up by 0.42 per cent at the time of filing this report.

In the broader Asian markets, all major indices opened with gains on Tuesday. Hong Kong’s Hang Seng surged more than 1 per cent, Japan’s Nikkei 225 rose by 0.4 per cent, and South Korea’s KOSPI gained 0.26 per cent. (ANI)