Indian stock markets started the week on a positive note. On Monday morning, both major indices—Nifty50 and BSE Sensex—opened in the green, supported by strong global cues.
- At 9:17 AM, Nifty50 was trading at 24,939.35, up 69 points (0.28%).
- The BSE Sensex was at 81,552.03, up 245 points (0.30%).
Why are markets positive?
Analysts believe Indian equities are getting support from:
- Optimism around GST 2.0 reforms.
- Strong domestic economic indicators.
- Positive global market trends after the US Federal Reserve hinted at possible interest rate cuts in September.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that US Fed Chief Jerome Powell’s remarks about a potential rate cut boosted US markets. However, for India, concerns about new tariffs from the US could overshadow this positivity.
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Tariff concerns for India
- The US may impose a 25% tariff on India from August 27 for importing oil from Russia.
- This could hurt India’s exports, especially in labour-heavy sectors like textiles, gems & jewellery, and leather.
- It may also affect jobs in these industries.
- Overall, this development is likely to have a negative impact on market sentiment, along with continued FII (Foreign Institutional Investor) selling.
Sectors that may perform better
Despite these challenges, some sectors are expected to withstand global headwinds, such as:
- Financials
- Telecom
- Aviation
- Hotels
- Cement
- Capital goods
Global market update
- In the US, markets ended sharply higher after Powell’s comments:
- Dow Jones jumped 846.24 points (1.89%) to 45,631.74, hitting a new record.
- S&P 500 gained 96.74 points (1.52%) to 6,466.91.
- Nasdaq rose 396.22 points (1.88%) to 21,496.54.
- Asian markets also opened higher, following Wall Street’s rally.
Crude oil update
Oil prices edged up after Ukraine’s attacks on Russia raised concerns of supply disruptions. Expectations of US rate cuts also boosted hopes of stronger global growth and higher fuel demand.
