Indian Markets Pause for Muharram, Asian Indices Show Mixed Trends

Indian stock markets are closed today for Muharram, resuming Thursday. Japan's Nikkei 225 and Hong Kong's Hang Seng saw modest gains, while Taiwan and China experienced declines. On Tuesday, Sensex and Nifty reached new record highs, driven by moderation in US inflation and positive IT sector results.

In observance of the Muharram holiday, Indian stock markets are closed today, with trading scheduled to resume on Thursday. Concurrently, Asian markets exhibited mixed performances. Japan's Nikkei 225 saw a modest rise, gaining 40 points to close at 41,310.70. Hong Kong's Hang Seng also edged up by 9 points, settling at 17,737.27. Conversely, Taiwan's Taiwan Weighted Index declined by 56 points, closing at 23,940.87, while the Chinese Shanghai Composite dropped 13 points to stand at 2,963.89.

On the domestic front, Indian stock indices Sensex and Nifty marked new record highs on Tuesday. The Sensex closed at 80,716.55 points, appreciating by 0.1%, and the Nifty concluded at 24,613.00 points, also up by 0.1%. Although broader indices experienced marginal gains, most sectoral indices fell into the red. Specifically, Nifty Media declined the most by 1.03%, whereas Nifty Realty climbed by 1.66%, as per NSE data. The past week has seen Indian markets touching fresh all-time highs.

Experts attribute the upward movement to multiple factors, including the latest moderation in US inflation, better-than-expected results from the IT sector, and the stability of market fundamentals. This rally has enabled Sensex and Nifty to collectively gain 11-13% in the current financial year (2024-25). Substantial buying by both foreign and domestic institutional investors has further buoyed market sentiment.

"Technically, after an early morning intraday rally, the market witnessed some profit booking on Tuesday at higher levels. However, the short-term texture of the market is still positive," commented Shrikant Chouhan, Head of Equity Research at Kotak Securities (ANI).