New Delhi [India], July 2 : Indian stock markets opened on a positive note on Wednesday, supported by optimism surrounding a potential India-US trade deal.
The Nifty 50 index opened at 25,588.30 points, gaining 46.50 points or 0.18 per cent, while the BSE Sensex opened at 83,790.72, up by 93.43 points or 0.11 per cent.
Market experts noted that despite the opening gains, Indian equities are likely to remain range-bound in the near term due to persistent foreign portfolio investor (FPI) outflows. However, they also believe that the upcoming corporate earnings season will determine the next direction for the markets.
Ajay Bagga, a banking and market expert, told ANI, "US markets saw a mild selling in Big Tech names to start July. Asian markets are down this morning on tariff concerns as Trump criticises Japan's stand on US tariffs. Indian markets have seen two days of net FPI outflows this week. That is keeping Indian stocks in a tight range despite many tailwinds in the form of a strong macro, policy continuity, monetary easing and fiscal rectitude. Earnings will provide the next catalyst for global and Indian markets."
On the global front, US President Donald Trump on Tuesday (local time) reaffirmed that India-US will soon strike a trade deal with "much less tariffs", allowing both countries to compete.
Meanwhile, the U.S. Federal Reserve is maintaining a cautious stance on interest rate cuts. In a recent speech, Fed Chair Jerome Powell said the central bank plans to "wait and learn more" about the impact of tariffs on inflation before deciding on any rate reductions. This is in contrast to President Trump's repeated calls for immediate and deeper rate cuts.
On the commodities front, Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services said "Gold prices edged lower in early morning trade, as investors awaited U.S. payroll data and assessed Federal Reserve Chair Jerome Powell's cautious stance on rate cuts, although a weaker dollar helped limit losses. Dollar index weakened to its lowest point in more than three years".
Meanwhile, the U.S. Senate narrowly passed President Trump's tax-and-spending bill, which includes tax cuts, reductions in social programs, and higher military spending.
In Asia, markets showed a mixed trend. Japan's Nikkei 225 fell by 1 per cent, South Korea's KOSPI dropped 1.2 per cent, Taiwan's weighted index declined 0.34 per cent. However, Hong Kong's Hang Seng index surged 0.68 per cent, and Singapore's Straits Times rose 0.38 per cent.
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