Stock Market Update: Nifty50 Opens Close to 25,300 as BSE Sensex Sees Gains

Stock markets in India opened positively on Thursday, buoyed by favorable global cues. The Nifty50 index approached 25,300, while the BSE Sensex gained approximately 150 points. As of 9:18 AM, the Nifty50 was trading at 25,290.90, reflecting an increase of 46 points or 0.18%, and the BSE Sensex stood at 82,904.55, up by 149 points or 0.18%. Market analysts suggest that the Indian markets are likely to maintain their strength, driven by reduced geopolitical risks and encouraging domestic indicators.

Market Sentiment and Global Influences

Market experts are optimistic about the Indian stock market’s resilience, attributing this to a decrease in international geopolitical tensions and positive domestic economic signals. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the recent ceasefire between Israel and Iran has contributed to a global “risk-on” sentiment. However, he cautioned that the ongoing issue of reciprocal tariffs could hinder a sustained market rally. Investors are particularly focused on developments around July 9, when the 90-day pause on these tariffs is set to end. The outcome of negotiations for bilateral trade deals with the United States will be closely monitored, as any positive news regarding an India-US trade agreement could significantly boost market confidence.

Foreign and Domestic Investor Activity

Foreign Institutional Investors (FIIs) have been active in the market, with reports indicating a net sale of shares worth Rs 2,427 crore on Wednesday. Conversely, Domestic Institutional Investors (DIIs) net purchased shares worth Rs 2,373 crore during the same period. The disparity in valuations between Indian and Chinese stocks has raised concerns among investors. Currently, Indian stocks are valued at over 22 times estimated earnings for FY 26, while the Hang Seng Index in China is around 15 times. This valuation gap may prompt FIIs to consider a “Sell India, Buy China” strategy. However, the substantial liquidity held by DIIs is expected to mitigate the impact of potential selling by FIIs on the overall market.

Global Market Trends and Economic Indicators

Asian stock markets saw gains on Thursday, led by a rise in Japanese equities, following a stable session on Wall Street. Investors are currently assessing various economic and geopolitical challenges. American stocks paused their upward trend on Wednesday, as the fragile ceasefire between Israel and Iran remained intact. Market participants are also analyzing Federal Reserve Chair Jerome Powell’s testimony before Congress, which could influence future monetary policy decisions. Oil prices have increased, continuing the upward trend from the previous day, as US crude inventories showed a significant decline, indicating robust demand. Meanwhile, gold prices have risen slightly, benefiting from a weaker dollar, as investors await upcoming US economic indicators to better understand the Federal Reserve’s stance on interest rates.

Market Outlook and Future Considerations

Looking ahead, market analysts remain cautious yet hopeful about the Indian stock market’s trajectory. The focus will be on how geopolitical developments, particularly in the Middle East, and domestic economic indicators will shape investor sentiment. The upcoming expiration of the reciprocal tariff pause on July 9 is expected to be a critical date for market movements. Investors will be keenly observing any news related to trade negotiations with the US, as positive outcomes could provide a significant boost to market confidence. Despite potential selling pressure from FIIs, the strong liquidity position of DIIs is likely to support the market in the near term.

Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.

Follow Us on Twitter, Instagram, Facebook, & LinkedIn