Mumbai (Maharashtra) [India], May 6 : Indian stock markets opened on a cautious note on Tuesday, with benchmark indices trading flat as investors awaited key global cues, particularly the U.S. Federal Reserve's two-day policy meeting set to begin later today.
Geopolitical tensions between India and Pakistan also weighed on investor sentiment, even as foreign portfolio investors (FPIs) continued to pump money into Indian equities.
The Nifty 50 index opened at 24,500.75, gaining 39.60 points or 0.16 per cent. The BSE Sensex also edged higher, opening at 80,907.24, up by 110.40 points or 0.14 per cent.
Ajay Bagga Banking and Market Expert told"India is seeing continued FPI inflows which is helping the Indian markets hold its own despite the geopolitical overhang. US markets are range bound and will stay in a tight range ahead of the US Federal Reserve meeting that starts today. We expect status quo on interest rates at this meeting and a possible rate cut in June. The Fed FOMC announcement of its decision on Wednesday will be market moving either ways depending on the outcome and the commentary".
On the global front, the weakening of the US dollar against Asian currencies drew attention, particularly as the Hong Kong Monetary Authority (HKMA) intervened in the markets on Monday to prevent its currency from appreciating sharply.
This highlights the broader volatility in global currency markets amid shifting interest rate expectations.
Back home, investor focus also shifted to corporate earnings, with several major companies slated to announce their fourth-quarter results today. These include Godrej Consumer Products, Bank of Baroda, CG Power and Industrial Solutions, BSE Limited, Hindustan Petroleum Corporation, Polycab India, One 97 Communications (Paytm), Radico Khaitan, KEI Industries, Poly Medicure, and Piramal Enterprises.
In Asia, markets saw mixed cues. Japan's markets were closed on account of a holiday. However, other major indices opened with gains. Hong Kong's Hang Seng advanced 0.52 per cent, Taiwan's Weighted Index rose 0.21 per cent, while Singapore's Straits Times gained 0.12 per cent.
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