Indian equity benchmark indices, Nifty50 and BSE Sensex, opened in the red on Tuesday. Nifty50 slipped below the 25,000 mark, while the Sensex was trading under 81,800. As of 9:30 am, Nifty50 stood at 24,889.55, down 112 points or 0.45 per cent, and BSE Sensex was at 81,794.79, down 382 points or 0.46 per cent.
Despite the early dip, market analysts remain optimistic, expecting continued upward momentum driven by strong domestic fundamentals and supportive global market trends.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “In the near-term the market is likely to consolidate around the current levels. Since mutual funds are sitting on sizeable cash any dip will be bought into and high valuations will trigger selling on rallies. A sustained rally will happen only when leading indicators suggest revival in earnings growth. That is some time away.
“An important trend in the market now is the slow accumulation in rate sensitivities like autos in anticipation of more rate cuts which are almost sure to happen since inflation is trending down. A significant feature of the SIP flows during this phase of the market is that investors are staying invested for longer time periods than in the past. This will provide support to the market,” he added.
Global Market Update
Asian markets opened on a cautious note Tuesday as investors awaited fresh developments in global trade that could influence sentiment toward US assets. The US dollar remained under pressure amid investor concerns over broad tax and spending legislation, which raised questions about the country’s debt outlook and dampened appetite for dollar-denominated assets.
Gold prices rose on Tuesday, supported by the weakening dollar and growing unease over the US fiscal situation. Investor focus also turned to upcoming trade policy announcements, following President Donald Trump’s move to postpone planned tariff hikes on European goods.
Investment Front
On the investment front, foreign portfolio investors (FPIs) made net purchases of ₹136 crore in equities on Friday, while domestic institutional investors (DIIs) bought shares worth Rs 1,746 crore.
Meanwhile, the net short position of foreign institutional investors (FIIs) in the futures market declined from Rs 54,197 crore on Friday to Rs 51,312 crore on Monday, signaling a slight easing in bearish sentiment.
