By India’s stock market opened on a positive note on Thursday, reflecting cautious optimism among investors. The benchmark indices—Nifty50 and BSE Sensex—started the day in green, continuing the momentum seen in the previous session. This came in the wake of heightened geopolitical tensions following India’s military operations, but optimism around international trade developments helped limit volatility.
At the start of Thursday’s session, the Nifty50 was trading at 24,424.60, marking a gain of around 10 points (0.042%). Similarly, the BSE Sensex stood at 80,849.80, up by 103 points (0.13%). The rise in these key indices indicates investor confidence, despite concerns linked to recent cross-border military action dubbed Operation Sindoor, which targeted terror camps in Pakistan and Pakistan-occupied Kashmir.
Stock market Sentiment Steady Despite Geopolitical Developments
Wednesday’s market session closed on a positive note after significant volatility throughout the day. The Indian stock market showed resilience, closing higher despite the tension stemming from military actions. Investor sentiment remained cautious but hopeful, bolstered by expectations of progress in US-India trade talks. This potential improvement in trade relations is especially significant for companies involved in exports, as it may boost business performance in the near term.
Meanwhile, foreign institutional investors (FIIs) displayed strong interest in Indian equities, making net purchases worth ₹2,585 crore. On the other hand, domestic institutional investors (DIIs) were net sellers, with total sales of ₹2,378 crore. The positive FII inflow suggests sustained global interest in Indian markets, which could continue to support the stock market in the coming days.
Global Markets Influence Indian Stock market
The Indian stock market also took cues from the global environment. In the US, stock indices ended higher on Wednesday, though the session was marked by choppy movements. The gains were largely driven by the performance of semiconductor stocks, which surged after reports emerged about a potential easing of regulations related to artificial intelligence (AI) chips.
The US Federal Reserve, as expected, chose to maintain the current interest rate levels. While this decision was widely anticipated, market participants remained guarded, interpreting the move as a sign that the central bank remains cautious about inflation and economic growth. The Fed’s statement raised concerns around employment trends and inflation persistence, both of which are critical to long-term market stability.
Asian stock markets traded within narrow ranges on Thursday as investors continued to assess the Fed’s stance and waited for further updates on US-China trade negotiations. This cautious approach in Asian markets reflects broader uncertainty, which is also being mirrored in the Indian trading environment.
Gold Prices Rise Amid Uncertainty
In the commodities segment, gold prices saw an uptick as investors turned to safe-haven assets. The precious metal gained on concerns related to inflation, employment data, and global geopolitical developments. Gold’s upward movement often signals caution in the broader financial markets and can affect investment behavior in the stock market.
Stock market Outlook
Looking ahead, the Indian stock market is expected to remain influenced by a combination of global cues, geopolitical factors, and progress in international trade talks. While the domestic political and security landscape has added an element of caution, strong FII participation and optimism around economic reforms and trade discussions may provide a support base for the indices.
Investors are advised to stay vigilant and consider sector-specific developments, especially in export-led industries and technology sectors, which could benefit from favorable global trade dynamics. The overall stock market trend suggests a cautiously optimistic outlook in the short term.
Despite short-term uncertainties, long-term prospects for the stoc market remain positive due to India’s robust economic fundamentals and reform-driven policies. Sector rotation is likely as investors rebalance portfolios in response to global cues. Monitoring corporate earnings, macroeconomic data, and geopolitical updates will be key to navigating the market effectively.
