Indian Markets Rebound After Losing Streak, Supported by Global Trends

Indian equity markets began the trading day on Tuesday with a positive trend, experiencing a modest recovery after a four-day losing streak, the longest since March. The Nifty 50 index opened higher, as did the BSE Sensex.

This rebound offered some relief to investors following recent market fluctuations, with broader market indices demonstrating strength. The Nifty Midcap 100 and Nifty Smallcap 100 also saw gains, along with the Nifty 100, indicating widespread buying activity.

Global market conditions also played a role in the Indian market's recovery. US markets closed with slight gains. Furthermore, stronger-than-anticipated economic data from China, including a 5.2% GDP growth in the second quarter, highlighted the country's ongoing economic resilience.

Sectoral indices on the National Stock Exchange of India (NSE) reflected the positive sentiment, with all major sectors opening in the green. Nifty Media led the gains, followed by Nifty Auto, Nifty IT, Nifty FMCG, Nifty Pharma, Nifty PSU Bank, and Nifty Realty.

Despite discussions surrounding potential tariffs, markets appeared to be taking the rhetoric in stride. Investor attention has turned towards upcoming earnings reports from major US banks and the release of economic data. Experts noted that the US Consumer Price Index (CPI) is expected to show a slight increase in inflation, while the Producer Price Index (PPI) may provide insights into supply chain impacts.

Meanwhile, safe-haven assets like gold and silver experienced minor declines after recent gains, reflecting an improved risk appetite among investors.

Market analysts provided technical insights, noting the importance of the 25000 support level. They also suggested that near-term bullishness should be approached with caution until the index closes above a certain level.

In other Asian markets, most indices were trading with gains, with the exception of South Korea's KOSPI. Taiwan's Weighted Index, Hong Kong's Hang Seng, and Singapore's Straits Times all showed positive movement.