Indian Markets Bounce Back but Caution Remains Amid Global Uncertainty
Indian equity markets are showing signs of stabilization after a sharp sell-off earlier this week, but investors are still treading carefully. The Sensex eked out a modest gain of 50 points to close at 82,276, while the Nifty held above the 25,450 mark, ending at 25,482. These numbers tell a story of cautious optimism rather than a full-blown recovery.
The session began on a positive note, with the Nifty opening above 25,500, lifted by strong overseas cues and a firm GIFT Nifty, which signaled a potential bullish start. Early buying interest in metals, select financials and industrial stocks supported the benchmarks, reflecting targeted confidence in sectors benefiting from global commodity prices and domestic infrastructure spending.
However, the market’s optimism was tempered in the afternoon as profit booking kicked in. Investors who had ridden recent gains chose to lock in profits, especially after a period of heightened volatility that saw IT stocks dragged sharply lower just a day before. This left the Nifty oscillating in a relatively narrow range, indicating a market that is consolidating and waiting for clearer signals before making major directional moves.
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Globally, sentiment was generally supportive. Asian equities gained, easing recent fears around artificial intelligence-driven disruptions, while Wall Street extended its tech-led rally overnight. Nvidia’s strong sales forecast provided a boost, pushing the Dow, S&P 500 and Nasdaq to multi-week highs. The dollar slipped slightly and Treasury yields remained largely flat, creating a backdrop of relative calm. Crude oil and gold held firm, reflecting ongoing geopolitical concerns and supply uncertainties.
On the domestic front, foreign institutional investors added nearly ₹3,000 crore in equities and domestic investors contributed another ₹5,100 crore. This fund flow suggests that while caution prevails, selective buying is taking place, especially in beaten-down mid-cap and small-cap stocks. Market breadth showed more gains than losses, but volumes were moderate, underscoring the careful approach traders are taking.
Technically, the Nifty is moving within a 25,350 to 25,700 range. Analysts note that breaking below this support zone could open the door to further downside, while resistance at 25,500 and 25,700 remains a barrier for bullish momentum. The relative strength index signals weak momentum, showing that neither buyers nor sellers currently dominate.
In short, the markets are recovering tentatively, balancing optimism with caution. Investors are rotating across sectors rather than making broad bets, waiting for clearer guidance from earnings trends and global developments. This pause could last as volatility persists and stock-specific moves are likely to drive trade more than broad market trends.
Stay with us for continuous coverage as markets navigate these uncertain waters and keep tuned for updates that can impact both your investments and the broader economic landscape.
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