New Delhi: Breaking a three-day slump, Indian stock indices closed positive on Wednesday, amid expectations that a India-US trade agreement is on the horizon, as Trump's commerce secretary indicated.
Firm US stock indices contributed to the rise of Indian stock benchmarks. The Sensex is currently around 5,000 points lower than its all-time peak of 85,978 points. It had dropped approximately 13,000 points from its high at one point. FPI purchasing has helped the indices lately.
The majority of sector indices ended today in the positive, with Nifty metal and Nifty oil and gas increasing the most.
Global gold prices also increased today. At the time of writing this report, one ounce of gold was trading for USD 3,384, a 0. 2% increase.
Investors are currently awaiting more news on India-US trade talks, as well as the RBI monetary policy announcement on Friday.
The market's strong underlying foundations include India's stable and growing economics, as well as continuous inflows into mutual funds, notably SIP inflows, which are consistent and increasing. This represents the maturity of the Indian retail investor, according to VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
According to Vijayakumar, the Q4 results show that midcaps outperformed largecaps and smallcaps. Since CPI inflation in India is mild, the rate-cutting cycle has more room to go, with at least two more cuts expected in 2025.
Another positive piece of news for the financial markets is that foreign portfolio investors (FPIs) were net sellers in Indian stock markets for the second consecutive month in May. FPIs had driven the current stock market rally following a major downturn.
Indian stock markets outperformed global markets in recent weeks, as volatility persisted in global markets due to fears about future US reciprocal levies. India's comfortable inflation rate helped to boost the domestic stock indexes.
In 2024, the Sensex and Nifty rose by around 910%. Sensex and Nifty surged 1617 percent on a combined basis in 2023, compared to only 3 percent apiece in 2022.
