Nifty, Sensex open in green, but experts say market to remain volatile till FIIs returns
Indian Stock Markets Open Positively Amid Global Economic Trends
On Tuesday, Indian stock markets began the day on a positive note. The Nifty 50 index rose by 84.50 points, or 0.35%, opening at 24,225.80 points. Similarly, the BSE Sensex index increased by 148.80 points, or 0.19%, starting at 79,644.95 points.
Market experts suggest that the Indian markets may remain under pressure until foreign investments return. Ajay Bagga, a banking and market expert, mentioned that the markets are volatile and range-bound, expecting this trend to continue until emerging market flows resume due to geopolitical breakthroughs or other global catalysts. He noted that the U.S. markets are benefiting from economic growth and attracting investments, while emerging markets face outflows due to a strong U.S. dollar. China is holding back its fiscal measures for the next year, anticipating the announcement of Trump Tariffs.
Among the sectoral indices on the National Stock Exchange, all except Nifty Pharma opened with gains. Nifty IT led the gains with a 0.60% increase. Major companies like Hyundai Motors, Bosch, UNO Minda, General Insurance Corporation of India, and BSE Limited are set to announce their financial results for the second quarter of FY25.
Akshay Chinchalkar, Head of Research at Axis Securities, observed that the Bank Nifty has been outperforming the Nifty and is likely to continue this trend based on index options positioning.
In other Asian markets, except for Japan's Nikkei 225 index, major indices like Taiwan's Weighted Index, South Korea's KOSPI, and Hong Kong's Hang Seng saw declines of over 1%.
Doubts Revealed
Nifty 50
Nifty 50 is a stock market index in India that represents the performance of 50 major companies listed on the National Stock Exchange (NSE). It's like a report card for these companies showing how well they are doing.
BSE Sensex
BSE Sensex is another stock market index in India, but it tracks 30 well-established companies listed on the Bombay Stock Exchange (BSE). It helps people understand the overall health of the stock market.
Foreign investments
Foreign investments are when people or companies from other countries put their money into Indian businesses or stocks. This can help the Indian economy grow, but if they take their money out, it can cause the stock market to go down.
U.S. economic growth
U.S. economic growth refers to how well the economy of the United States is doing. Since the U.S. is a big player in the world economy, its growth can affect other countries, including India.
Strong dollar
A strong dollar means that the currency of the United States, the dollar, is worth more compared to other currencies. This can make it more expensive for other countries to buy things from the U.S. and can affect global trade.
Volatility
Volatility in the stock market means that the prices of stocks can change a lot in a short period. It can be risky for investors because they might lose or gain money quickly.
Range-bound trends
Range-bound trends mean that the stock prices are moving within a certain range and not going too high or too low. It's like a car moving back and forth between two points without going beyond them.
Bank Nifty
Bank Nifty is a stock market index that tracks the performance of major banks in India. It helps investors see how well the banking sector is doing.
Nifty IT
Nifty IT is a stock market index that focuses on the performance of major Information Technology (IT) companies in India. It shows how well the IT sector is performing in the stock market.
Quarterly results
Quarterly results are financial reports that companies release every three months. They show how much money the company made or lost during that time, helping investors decide if they want to buy or sell the company's stocks.
Nikkei
Nikkei is a stock market index in Japan, similar to Nifty 50 or BSE Sensex in India. It tracks the performance of major companies listed on the Tokyo Stock Exchange.
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