Mumbai (Maharashtra) [India], May 2 : Indian equity benchmarks opened with gains on Friday, with global cues remaining broadly positive, the uncertainty on the domestic front capped gains for Indian indices due to tensions on the India-Pakistan border.
The Nifty 50 index surged to 24,395.90, marking a modest gain of 55.30 points or 0.2 per cent. On the other hand, the BSE Sensex saw an uptick, opening almost flat at 80,290.34 but gained 360 points to 80,607 at the time of filing this report.
Market experts pointed out that the ongoing border tensions are the primary factor holding back a stronger rally in the Indian equities. They believe that in the absence of such geopolitical risks, the overall positive global sentiment would have supported a sharper upward move in domestic markets.
Ajay Bagga, Banking and Market expert, told ANI, "Indian markets are now having the overhang of Indo-Pak tensions, otherwise Indian markets are ready to roll forward on good global cues and sustained dry intestine support. Leadership will move to IT, as Global recovery will help that
Sectoral indices presented a mixed picture in early trade. Nifty FMCG, Nifty Pharma, Nifty Realty, Nifty Healthcare, and Nifty Consumer Durables opened in the red, reflecting cautious investor sentiment in these segments. In contrast, Nifty Auto, IT, and Media indices witnessed modest gains, indicating selective buying interest at the sectoral level.
On the global front, equity markets showed resilience despite some economic concerns. US markets are leading the recovery charge, brushing aside weaker-than-expected Q1 GDP numbers and subdued Chinese manufacturing data.
The rally is being fuelled by strong Big Tech earnings and easing tensions between the US and China, supporting the broader "hope trade." As a result, global cues remain firmly positive, providing a supportive backdrop for emerging markets like India.
In corporate earnings, several notable companies are scheduled to announce their Q4 FY25 results today. These include Marico, Indian Overseas Bank, Godrej Properties, Jindal Saw, Newgen Software Technologies, City Union Bank, and Gravita India.
Akshay Chinchalkar, Head of Research, Axis Securities said "The Nifty ended flat in the previous session but not before a last minute sell-off was bought into aggressively. That saw the candle trace a long lower shadow, proving that 24200 is vital near-term support. Resistance will continue to be offered between here and 24500, with a break bringing 24800 into focus".
Meanwhile, in the previous trading session, domestic institutional investors (DIIs) remained net buyers with an investment of Rs 1,792 crore. However, foreign portfolio investment (FPI) inflows moderated significantly, with net inflows of only Rs 50 crore, according to data released by the NSE.
Asian markets were largely in the green at the time of this report, bolstering investor confidence across the region. Japan's Nikkei 225 index surged over 0.6 per cent, Taiwan's Weighted Index rallied more than 2 per cent, Hong Kong's Hang Seng rose 1.37 per cent, while South Korea's KOSPI traded flat but in the green.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor