Indian Stock Market Juggles Gains Amidst Unsettled Forex and Global Trends

Indian stock markets opened with modest gains despite pressure from a weak rupee and global uncertainties. The BSE Sensex rose by 0.07%, while the NSE Nifty50 gained 0.15%. Experts highlight the impact of foreign investor activity and rupee dynamics, cautioning on market volatility amid ongoing global economic signals.

The Indian stock markets opened on a cautiously optimistic note on Wednesday, managing modest advances despite underlying pressures. By 09:21 a.m., the BSE Sensex registered an increase of 63.42 points, marking a 0.07% rise to 84,743.28. Simultaneously, the NSE Nifty50 climbed 37.95 points to 25,898.05, representing a 0.15% ascent. Market experts caution against exuberance as a depreciating rupee and consistent investor withdrawals perpetuate a careful market sentiment.

Analysts attribute the prevailing pressure to the Indian rupee's devaluation, reinforced by foreign investment outflows and sluggish FDI inflows, pushing the rupee beyond the 91 per dollar threshold. However, a marked recovery saw the rupee rebounding to 90.14 against the US dollar. Currency expert K N Dey highlighted the Reserve Bank of India's decisive intervention, correcting the rupee's course shortly after it touched 91.07, catalyzed by a significant swap deal. Meanwhile, Ponmudi R, CEO of Enrich Money, noted a cautious global market outlook due to uncertainty over US interest rate directions.

On the domestic front, sustained selling by foreign institutional investors and the rupee's weakness remain key challenges. Nonetheless, local investments have somewhat cushioned the market from steeper declines. Ponmudi R observed mild short-term weaknesses in the Nifty index, which is trading slightly below key levels. Furthermore, he identified critical support zones across both the Nifty and Bank Nifty indices, emphasizing the markets might remain within a range while being susceptible to downward risks.

Ajay Bagga, a market advisor, listed crucial events including central bank meetings in major economies and geopolitical tensions such as Trump's stance on Venezuela. He also pointed out disparate performances in the primary and secondary markets, with primary markets buoyed by an oversubscribed IPO from an AMC company, contrasting with liquidity challenges in secondary markets driven by IPO lotteries.

(With inputs from agencies.)