India’s benchmark indices opened higher on Tuesday, staging a mild rebound after four straight sessions of losses, as easing inflation and positive global cues lifted investor sentiment.
Consumer inflation dropped to a more than six-year low of 2.10 per cent in June, providing a boost to hopes for future rate cuts and signalling macroeconomic resilience.
The Nifty 50 rose 36.30 points, or 0.14 per cent, to 25,129.70, while the BSE Sensex added 85.48 points, or 0.10 per cent, to 82,338.94.
The rebound offered some relief to investors following recent market volatility. Broader indices showed even stronger momentum, with the Nifty Midcap 100 climbing 0.57 per cent and the Nifty Smallcap 100 gaining 0.82 per cent. The Nifty 100 was up 0.29 per cent.
Global markets also provided tailwinds. US equities eked out modest gains overnight, while Asian stocks advanced after China’s second-quarter GDP growth came in at a better-than-expected 5.2 per cent, signalling underlying economic strength.
Ajay Bagga, a banking and market expert, said, “Indian markets recovered from session lows on Monday, signalling that the four-day fall, the first since March, may be bottoming out. With CPI at multiyear lows, there’s now more room for rate cuts. The global outlook is resilient, and we expect Indian markets to show some strength here on.”
Sectoral indices on the NSE mirrored the upbeat tone, with all major sectors opening in the green. Nifty Media led the gains, rising 1 per cent. Nifty Auto advanced 0.68 per cent, Nifty IT added 0.31 per cent, and Nifty FMCG edged up 0.22 per cent. Nifty Pharma and Nifty PSU Bank also saw gains of 0.22 and 0.28 per cent, respectively. The Nifty Realty index climbed 0.48 per cent.
Despite ongoing uncertainty around potential US tariffs under Donald Trump’s policy rhetoric, markets appeared to take the noise in stride. Focus has now shifted to upcoming earnings from major US banks and key macroeconomic data.
The US Consumer Price Index (CPI) is expected to show a mild uptick in inflation, while the Producer Price Index (PPI), due Wednesday, may offer insight into the impact of supply chain disruptions and tariffs.
Meanwhile, safe-haven assets like gold and silver posted mild declines after recent gains, suggesting improved risk appetite among global investors.
Akshay Chinchalkar, Head of Research at Axis Securities, offered a technical perspective: “The Nifty held support at 25,000 on Monday, forming a large lower shadow candle, which suggests that the level is technically significant. However, unless the index closes above 25,340, bulls should remain cautious, as a drop into the 24,800–24,900 zone remains likely.”
Across Asia, indices were largely trading in the green. Taiwan’s Weighted Index rose 0.65 per cent, Hong Kong’s Hang Seng was up 0.20 per cent, and Singapore’s Straits Times edged 0.12 per cent higher. South Korea’s KOSPI was the only major laggard at the time of reporting.
(DD News)