Indian markets open sharply higher on positive global cues; Sensex up 650 points, Nifty above 175 points
New Delhi, July 29
Indian benchmark equity indices opened sharply higher on Wednesday, tracking positive global cues as investors reacted to easing crude oil prices, firm Asian markets, and the implementation of new US tariff measures that were largely in line with market expectations.
The BSE Sensex opened at 77,419.74, rising 653.82 points or 0.85 per cent, while the NSE Nifty 50 gained 175.60 points or 0.73 per cent to open at 24,160.95.
The strong opening comes amid shifts in global commodity prices and the rollout of fresh tariff measures, with investors closely monitoring their impact on trade and market sentiment.
The broader Asian markets displayed significant divergence across indices. The Hang Seng gained 1.37 per cent to stand at 25,657.00, GIFT NIFTY rose 0.62 per cent to 24,240.50, and the Straits Times edged up 0.42 per cent to 5,639.53.
On the downside, South Korea's KOSPI experienced a sharp drop of 8.90 per cent to 5,531.56, followed by the Taiwan Weighted index dropping 3.74 per cent to 40,047.65 and Japan's Nikkei 225 falling 2.02 per cent to 61,105.00.
Commenting on global conditions, Ajay Bagga, banking and market expert, said: "Global equity markets are reeling from a massive sell-off in AI and semiconductor stocks that accelerated yesterday, July 28. Investors are growing increasingly cautious about the realistic returns on heavy AI infrastructure investments."
US markets showed a mixed picture, with Dow Jones Futures trading down at 52,675.91, down 71.41 points, and the Nasdaq declining to 24,876.91, down 55.17 points. The S&P 500 posted modest gains, reaching 7,428.78, up 15.60 points or 0.21 per cent.
"New 10-12.5% tariffs on roughly 60 trading partners covering 99.4% of US imports took effect July 24, replacing the expired blanket 10% levy the Supreme Court struck down earlier this year," Bagga said.
"Separately, Washington has laid on 50% tariffs on select Canadian goods and 25% on Brazilian imports. The administration insists trade policy will not be constrained by the courts," he added.
Highlighting the geopolitical developments and their impact on crude oil trends, Bagga noted that after weeks of on-off hostilities around the Strait of Hormuz, a pause in US-Iran fighting has eased oil prices and lifted hopes of a fresh ceasefire.
"Brent has retreated from a brief spike above $100/barrel during the worst of the flare-up to the mid-USD 80s, on the back of the peace talks. This is providing relief on the inflation front just as the Fed deliberates."
At the time of reporting, Brent Crude rose 4.17 per cent to USD 87.59 per barrel, and Crude Oil jumped 4.07 per cent to USD 82.48 per barrel. Meanwhile, Gold remained nearly unchanged, down just 0.03 per cent to stand at USD 4,027.19.
"July was a market that went nowhere on the scoreboard but everywhere in between -- geopolitics wrote the script, and Indian retail money kept the market standing," Bagga stated.
Providing a technical perspective on the indices, Shrikant Chouhan, Head Equity Research, Kotak Securities, stated that a sustained move above 24,050 (77,000) could trigger fresh buying momentum, paving the way for a rally toward 24,150-24,200 (77,300-77,500).
"Use the ongoing pullback to reduce weak long positions in the 24,100-24,200 zone. Fresh buying should be considered selectively on declines toward the 23,800-23,700 support area, where the risk-reward profile appears more favourable," Chouhan advised.
— ANI
Reader Comments
Sensex at 77,400 and Nifty above 24,100 - unbelievable! But I remember 2020 when markets crashed, and now look at us. India's resilience is something else. The way retail investors are keeping the market afloat even during global turmoil is truly remarkable.
Positive global cues are fine, but we need to see the ground reality. India's inflation is still high, and the RBI might hike rates again. Markets are not the economy, yaar. Let's not get carried away by this single-day rally. Be careful with new positions.
The way crude oil prices are fluctuating is scary - from $100 to $87 now, but still high. This directly impacts our import bill and fuel prices at the pump. Hope the government uses this opportunity to strengthen our strategic petroleum reserves. 🤞
I think the real story here is how Indian retail investors have become the backbone of our markets. Foreign investors come and go, but domestic money is here to stay. Just hope the volatility doesn't eat up our savings. Stay disciplined, folks. 💪
Good to see markets green today, but I wish the article had more analysis on which sectors are driving the rally. Last week IT stocks were struggling, now everything is up. The churn below the surface is wild. Need to follow Chouhan sir's advice on stop-losses.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.