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Indian stock markets began the day on a positive note on Thursday, even as tensions with Pakistan continue to escalate following the recent terror attack in Kashmir.
The benchmark Nifty 50 index opened at 24,289, registering a gain of 42.30 points or 0.17 per cent, while the BSE Sensex rose modestly by 28.72 points, reaching 79,830.15 at the start of trading.
Despite the geopolitical concerns surrounding India-Pakistan relations, market experts pointed out that foreign portfolio investor (FPI) inflows have remained robust, providing support to the market rally. However, they cautioned that any military escalation between the two countries could trigger a significant sell-off in the stock market.
Ajay Bagga, a banking and market expert, told ANI, "Indian markets saw a brief pause after seven consecutive days of gains. FPIs continue to be net buyers, which is supporting the ongoing rally. However, the uncertainty surrounding India's potential military retaliation following the terrorist attack in Kashmir on the 22nd is creating a cloud of caution over the market."
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Bagga further added, "The market is opening strong today, and the sustained FPI inflows suggest that the positive trend may continue. Given India's previous retaliatory actions against Pakistan-sponsored terrorism, it's likely that any military response will come after a few days, contributing to the market's uncertainty. The Karachi exchange also witnessed a 2 per cent decline in the wake of these tensions."
On the global front, investor sentiment has improved, with growing optimism over the potential resolution of tariff issues. US markets have posted gains for three consecutive days, with many market participants believing that the peak of tariff uncertainty has passed. There are also expectations that the US and other countries will soon announce new tariff agreements, boosting investor confidence.
Moreover, there is speculation about a "Trump Put," which could act as a safety net for global markets, especially as the month of April comes to a close.
Back in India, several major companies are scheduled to announce their Q4 earnings today, including 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, commented, "As long as the Nifty remains above the 24,120 level, the overall trend remains bullish. The 24,500 level will act as a key resistance point. Additionally, the net short positioning of foreign institutional investors (FIIs) in index futures is at its lowest level since October 7, which is another positive signal for the market."
Asian markets were also trading in the green, with Japan's Nikkei 225 index climbing more than 1.3 per cent, Hong Kong's Hang Seng gaining over 1.4 per cent, South Korea's KOSPI rising by more than 1 per cent, and Taiwan's Weighted Index jumping over 2 per cent at the time of this report.
(With inputs from ANI)
