Indian stock markets are set to start the week on a positive note, with the Sensex and Nifty 50 indices likely to open higher on Monday.
This optimism is largely driven by gains in global markets, which have shown resilience despite ongoing economic challenges.
Positive trends in the Gift Nifty further indicate a promising opening for Indian markets, offering a boost to investor sentiment.
Global market trends drive optimism
Recent developments in global stock markets have provided a cushion for Indian equities.
A rebound in key international indices has helped boost confidence among domestic investors.
European and US markets closed the previous week with gains, with investors optimistic about stabilizing inflation and improving economic growth prospects.
These global trends, along with continued strength in select sectors, are expected to drive Indian markets higher.
According to data from the Gift Nifty, Indian markets may see a slightly positive opening.
The Gift Nifty was trading at around 25,085, showing a premium of nearly 35 points compared to the Nifty futures’ previous close, signaling a potentially upbeat start to trading on Monday.
Key sectors to watch as Indian markets open
As markets prepare to open, several sectors could experience heightened attention from investors.
- Banking and financial services: Banks and financial institutions are expected to continue their upward momentum, supported by strong quarterly earnings reports and improving credit demand.
- IT and technology: The Indian IT sector remains a crucial driver for markets, particularly with the ongoing digital transformation across industries. Companies in this sector are poised to benefit from the global shift toward technology-driven solutions.
- Metals and energy: Metal stocks have seen a steady rise in demand due to recovery in global commodity prices, while energy companies continue to benefit from stable oil prices and higher demand.
- Pharmaceuticals: The healthcare and pharmaceutical sector continues to attract investors as it remains resilient in the face of fluctuating economic conditions.
Sensex and Nifty poised for modest gains
While the exact opening numbers will be revealed when trading begins, market analysts predict that the Sensex and Nifty 50 could post moderate gains based on current global cues.
The Gift Nifty’s slight premium of 35 points also reinforces this expectation of a positive start.
While this suggests that markets will likely begin in the green, investors remain cautious due to persistent global economic concerns, including inflation and interest rate adjustments by central banks.
Outlook for the week
The upcoming week is expected to be eventful for Indian markets, with domestic and international factors shaping trading sessions.
Market participants will closely monitor the release of key economic data, such as retail inflation and industrial output figures, which could influence market movements in the short term.
Additionally, corporate earnings reports from major companies will play a critical role in dictating market sentiment.
In the international arena, developments related to the US Federal Reserve’s interest rate policies and China’s economic recovery will be closely watched.
Any major announcements could affect global markets, including Indian equities.
Experts believe that while positive global cues may support an upward trajectory in Indian markets, volatility cannot be ruled out due to uncertainties around inflation and global economic recovery.
Investor sentiment remains positive
Despite global uncertainties, investor sentiment in India remains positive, driven by hopes of a sustained economic recovery and robust corporate earnings.
The Reserve Bank of India’s accommodative monetary policy stance, aimed at supporting growth, has further bolstered investor confidence.
Additionally, the continued inflow of foreign institutional investments (FII) into Indian equities has provided strong support to market indices.
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