Indian stock markets witnessed a subdued opening on Tuesday as benchmark indices remained nearly flat, with investors keeping a keen eye on impending global developments, especially the U.S. Federal Reserve’s policy meeting commencing later today. Geopolitical tensions between India and Pakistan further tempered market sentiments, although the steady influx of investments from foreign portfolio investors (FPIs) provided some support to Indian equities.
The Nifty 50 index initiated trading at 24,500.75, reflecting a rise of 39.60 points or 0.16 percent, while the BSE Sensex opened at 80,907.24, marking an increase of 110.40 points or 0.14 percent. Market expert Ajay Bagga commented to ANI that robust FPI inflows are fortifying Indian markets amidst geopolitical strains. He also noted that U.S. markets are expected to remain in a narrow range ahead of the Federal Reserve meeting, anticipating no immediate changes to interest rates but a potential rate reduction in June. The Federal Reserve’s decision, set to be announced on Wednesday, is anticipated to significantly influence market trends depending on the guidance provided.
Globally, attention was drawn to the U.S. dollar’s weakening against Asian currencies, particularly after the Hong Kong Monetary Authority intervened to prevent its currency’s excessive appreciation on Monday. This development underscores the broader volatility in global currency markets amid changing expectations around interest rates.
Domestically, investors shifted focus to corporate earnings with major companies scheduled to release their fourth-quarter results, including Godrej Consumer Products, Bank of Baroda, and others. In Asia, market indicators showed mixed signals. While Japan’s markets remained closed due to a holiday, other significant indices opened stronger; Hong Kong’s Hang Seng rose by 0.52 percent, Taiwan’s Weighted Index gained 0.21 percent, and Singapore’s Straits Times edged up by 0.12 percent.
(With inputs from agencies.)
