Indian stock markets started Friday on a positive note after falling in the last two trading sessions. The Nifty50 index opened above 24,500, while the BSE Sensex gained more than 100 points.
At 9:16 AM, Nifty50 was trading at 24,546.15, up 45 points (0.18%), and Sensex was at 80,211.01, up 130 points (0.16%).
Why the Markets Are Moving
Experts believe that upcoming policy changes such as GST reforms, import duty cuts, and the ‘Swadeshi’ initiative are likely to bring some stability to Indian markets, even though global trade tensions remain a challenge.
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, explained that although domestic institutional investors (DIIs) bought stocks worth ₹6,920 crore yesterday (much higher than the foreign institutional investors’ (FIIs) selling of ₹3,856 crore), the Nifty still fell by 211 points.
This drop happened because FIIs are building more short positions (bets that the market will fall) due to negative sentiments created by the proposed 50% Trump tariff and India’s high stock valuations.
He added that September usually sees big market moves. If there’s clarity on tariff policies, market sentiment could quickly improve, leading to a rebound. For now, investors can use market dips to buy good stocks and wait patiently for growth.
Global Market Update
- US Markets: The S&P 500 and Dow Jones closed at record highs on Thursday after Nvidia’s results showed strong spending on AI infrastructure, even though earnings were slightly below expectations.
- Asia: Asian stocks opened cautiously but were supported by strong US economic data ahead of Friday’s Federal Reserve inflation report.
- Gold: Gold prices stayed near a one-month high, helped by a weaker dollar and expectations that the US Federal Reserve may cut interest rates in September, boosting demand for the precious metal.
