Indian Markets Struggle Amid Global Uncertainties and Mixed Cues

Indian stock markets opened flat on Wednesday amid mixed global influences, ongoing FPI outflows, and uncertain U.S. trade policies. While some indices saw gains, auto, bank, and realty sectors lagged. Analysts remain cautious, awaiting key global cues and domestic earnings reports for clearer market direction.

Indian stock markets showed little change on Wednesday as they opened amid mixed global signals, ongoing foreign portfolio investor outflows, and uncertainty surrounding a U.S. trade deal. The BSE Sensex rose slightly to 81,594.52, while the Nifty50 at the National Stock Exchange commenced at 24,890.40.

In early trading at NSE, companies like L&T, Asian Paints, Axis Bank, Jio Financial, and Bajaj Finance emerged as significant gainers. Conversely, Tata Motors, SBI Life Insurance, ICICI Bank, and SBI were among the leading losers.

Sector-wise, only the auto, bank, and realty sectors reported losses, while all other indices traded positively. Market sentiment appeared weighed down due to a lack of major developments in the bilateral trade agreement. President Trump signaled potential tariffs of 20-25% on India, which could impact market mood. Foreign Institutional Investors recorded net sales of Rs 4,636.60 crore on Tuesday, while Domestic Institutional Investors showed net buying of Rs 6,146.82 crore in equities. Asian markets showed mixed performance amid uncertainty regarding the U.S.-China tariff pause.

Market watchers are also noting India's growth prospects, buoyed by the International Monetary Fund's optimistic outlook. However, the threat of new U.S. tariffs remains a concern, as noted by Ajay Bagga, a market expert. The Nifty gained 140 points to close at 24,821 the previous day, sparking hopes for a recovery.

The Federal Reserve's decision later today is anticipated to maintain current interest rates. Tuesday's markets saw over a half-percent increase. Experts highlight that further gains could be expected if Nifty crosses 24,800, with key support at 24,550. Attention now turns to global influences, forthcoming central bank statements, and local earnings reports for market guidance, according to Vikram Kasat of PL Capital.

(With inputs from agencies.)