Cautious Optimism: Indian Markets Navigate Global and Domestic Headwinds

Indian equity markets opened slightly higher, experiencing a 'wait and watch' mode due to global uncertainties and moderate expectations from the upcoming Union Budget. Various sectors showed mixed fortunes, and the market anticipates clarity from potential India-EU and India-US trade deals, while significant Q3 results are expected today.

The Indian stock markets began Thursday with minor gains amid cautious expectations impacted by foreign portfolio investor selling and mixed global cues. The Nifty 50 increased by 0.12 per cent to 25,696.05, while the BSE Sensex rose by 0.35 per cent to stand at 83,670.79.

In an interview with ANI, market expert Ajay Bagga highlighted that the Indian markets are adopting a 'wait and watch' approach. He added that the market anticipates limited surprises from the 2026 Union Budget, while potential trade deals with the EU and US could provide a much-needed boost. Indices such as Nifty 100, Nifty Midcap 100, and Nifty Smallcap 100 opened in green.

Sector-wise, the market saw mixed outcomes. Nifty FMCG, IT, PSU Bank, and Metal posted gains, while Nifty Auto, Pharma, and Media faced declines. Significant companies, including Reliance Industries and Wipro, are set to release Q3 results today, likely impacting market sentiment.

Ponmudi R, CEO of Enrich Money, mentioned that Indian markets are likely to trade with restraint due to ongoing geopolitical developments and uncertain tariff negotiations. Despite foreign investor outflows, domestic institutional investors helped stabilize the market to some extent.

Globally, easing tensions in the US-Iran front and right results from TSMC buoyed US semiconductor stocks, but Asian markets presented mixed signals, influencing Indian equities' cautious stance.