Indian Stock Markets Rise Amid Mixed Global Cues and Geopolitical Tensions

Indian stock indices started the week positively, with Sensex and Nifty closing higher. Investors are watching foreign investments and geopolitics closely. Recent gains come amid cautious sentiment due to India-Pakistan tensions, while foreign portfolio investors remain net buyers, enhancing optimism despite a moderated market momentum.

Indian stock indices kicked off the week on a positive note, building on gains from the prior week. The Sensex closed at 80,796.84 points, rising by 294.85 points or 0.37 percent, while the Nifty closed at 24,461.15 points, up by 114.45 points or 0.47 percent. Most sectoral indices witnessed an increase, with substantial gains in the Nifty auto and oil and gas sectors on Monday.

As the week unfolds, investors are set to closely monitor foreign portfolio investments (FPI), which have recently shifted to net buying positions. Attention will also focus on any developments in the India-US bilateral trade negotiations and the fourth-quarter earnings results of key listed companies for updated market cues. Globally, the results of the US Central Bank's monetary policy meeting are also under scrutiny.

Last week marked a record for India's stock indices, with the Sensex and Nifty securing their longest weekly winning streak of 2025. Over a holiday-truncated week, the Sensex surged more than 1,100 points, equivalent to a 1.5 percent boost. Positive resilience was bolstered by foreign portfolio investors turning net buyers again after a three-month hiatus, albeit slowly picking up pace.

Vinod Nair, Head of Research at Geojit Investments Limited, remarked that the market has maintained a positive trajectory despite a drop in overall optimism. Significant foreign investments and record GST collections in April underpin this growth, suggesting economic resilience. A weakened dollar and declining oil prices have further lifted sentiment among foreign institutional investors. However, market actions are leaning towards stock and sector-specific trends, as the broader market has recovered over 50 percent of losses encountered between September 2024 and March 2025, according to Nair.

Sundar Kewat, a Technical and Derivatives Analyst at Ashika Institutional Equity, noted that investor gains were restrained by cautious sentiment amid rising geopolitical concerns, particularly between India and Pakistan. Despite the backing from selective sectors, investors adopted a defensive stance. The positive trajectory in India's stock market had gained momentum following Donald Trump's decision to halt reciprocal tariffs for 90 days, initially causing a global equities sell-off.

Recent geopolitical tensions, especially following the terrorist attack in Pahalgam on April 22, have impacted investor sentiment. Investors are expected to keep a vigilant eye on ongoing developments in this space.

(With inputs from agencies.)