Despite heightened tensions with Pakistan following the recent terror strike in Kashmir, Indian equity markets opened on a positive note on Thursday, buoyed by sustained foreign portfolio investor (FPI) inflows and improved global cues.
The NSE Nifty 50 index opened at 24,289, gaining 42.30 points or 0.17 per cent. Similarly, the BSE Sensex registered a modest rise of 28.72 points to open at 79,830.15.
Market analysts observed that investor sentiment remains cautious but resilient, thanks to consistent FPI activity and a broadly supportive global backdrop.
Ajay Bagga, banking and market expert, maintained, “Indian markets saw a brief break after seven days of continuous rise. FPIs remain buyers, lending strength to the market rally. The overhang of Indian retaliation on Pakistan for the terrorist massacre in Kashmir on the 22nd is what is holding back Indian markets.”
He added, “Today is pointing to a strong gap up open and with FPIs piling back every day, this should sustain. Given the previous two retaliatory actions by India on Pakistan-sponsored terrorists was after 10 and 15 days respectively of the terrorist strikes, we could be some days away from the event. That is adding to market uncertainty, with the Karachi exchange also falling two per cent in the aftermath.”
Global sentiment improved following positive developments on international trade talks. US markets registered gains for a third consecutive session, raising optimism that the worst of tariff uncertainty may be over.
Investors are now anticipating fresh trade agreements involving the US, while some analysts referenced the "Trump Put"—a belief that the former President's economic stance continues to offer a safety net to global markets.
On the domestic front, several major Indian firms are set to announce their Q4 earnings later in the day. These include Reliance Industries, Maruti Suzuki India, Hindustan Zinc, Shriram Finance, Cholamandalam Investment and Finance, Oracle Financial Services Software, Lloyds Metals and Energy, Motilal Oswal Financial Services, LT Finance, Bank of Maharashtra, Poonawalla Fincorp, Tata Technologies, and Dr Lal PathLabs.
Akshay Chinchalkar, Head of Research at Axis Securities, said, “As long as the 24120 level is holding, the trend is firmly bullish. 24500 remains important resistance. Meanwhile, FII net short positioning in index futures is now at the smallest reading since October 7, when they first went net short since the record peak, so that's another sign of optimism.”
Asian indices also opened in the green. Japan’s Nikkei 225 climbed over 1.3 per cent, Hong Kong’s Hang Seng rose more than 1.4 per cent, South Korea’s KOSPI was up by over 1 per cent, and Taiwan’s Weighted Index surged over 2 per cent.
Follow us
