Indian benchmark equity indices started the new month on a bullish but cautious tone, with the Nifty 50 and BSE Sensex opening a tad higher this Tuesday morning. That rise was largely catalyzed by positive news coming from Asian markets and an overall improved global sentiment, particularly in advance of an important U.S. tariff deadline scheduled for July 9th.
At opening, the BSE Sensex gained 118 points to 83,724, while the Nifty 50 index opened with an 18-point gain at 25,535. At 10:11 AM IST, the Nifty 50 index was trading with marginal gains at 25,544.80, and fluctuating just above Friday’s closing level of 25,517.05 points. The Sensex as of that time was 83,740.59. Though Monday made a small down day as investors went into profit-booking mode after a strong finish to June, the overall market sentiment is suggesting constructive continuation with the Nifty 50 already clocking a robust 3.1% for the full month of June while Sensex recording a formidable climb of about 2.74% for the month.
International Signals and Other Drivers:
The bullish opening in India is reflective of wider positive advances in Asian equities, with the MSCI Asia ex-Japan index climbing by 0.6%. Wall Street was on the upswing on Monday, lifted by optimism about the outcome of U.S. trade talks, especially about avoiding the imposition of new tariffs. This renewed optimism from global markets is proving a sanguine backdrop for Indian bourses.
The Indian Rupee maintained its general strengthening trend against the US Dollar. After strengthening yesterday, the Rupee was trading at about 85.45 to the US Dollar, a welcome trend for India’s import-dependent economy. At the same time, on the crude oil front, prices have stabilized trading around $67.67 per barrel, which is good for India’s energy imports bill and helps reduce the pressures of inflation.
Sectoral Performance and Key Movers:
Today’s market breadth was an eclectic mix, overall advancing stocks outnumbered declining ones, especially in the greater market. This outperformance was echoed by the Nifty Midcap 100 and Nifty Smallcap 100 indices, indicating a strong participation from the broader market, a sign of sustenance.
Renewed buying interest was seen in PSU Bank stocks, which had emerged as the top gainers yesterday after the Finance Minister urged public sector banks to increase lending. This feeling was then reinforced by SEBI’s nod to easier delisting norms for PSUs where more than 90% is owned by the government, which could make exits much easier.
Leading gainers in early trades for the Nifty 50 included HDFC Bank, and Apollo Hospitals Enterprise Ltd, which were among the measure’s best performers and lifted the benchmark indices higher. Bharti Airtel staged a recovery. On Monday, Tata Consumers, Kotak Bank, and Axis Bank were leading losers showing some profit booking coming for the banking and consumption sector.
Lumber City LLC via Unsplash Institutional Investor Activity:
On the institutional front, FIIs net sold shares worth ₹787.62 crore on Monday (June 30). This capital outflow was very strongly neutralized by big-time buying from Domestic Institutional Investors (DIIs), who net bought shares worth ₹3,383.01 crore on the same day. This repeat buying by DIIs has played an important role in providing resilience and absorbing FII selling pressure in the Indian market.
Outlook Overall, the technical implications of this news could be massive, far greater than any 6-month delay.
During an IAEE roundtable of market analysts last week, participants agreed that the optimistic overall short-term outlook for the Indian market is warranted. For the Nifty 50, immediate support is placed at the 25,300-25,200 range and resistance at 25,650 followed by 25,870 levels. Until daily technical indicators such as daily RSI for Nifty are in overbought territory and are in a healthy zone indicating that the momentum continues to remain intact.
Also check:- Indian Equities Witness Cautious Opening on June 30, Nifty Hovers Around 25,550 Amid Global Cues
Smart investors will be focused on the developing global trade picture, especially the US-China trade talks and the US-China trade war’s impending tariff deadline. Domestically, the eye will turn more toward the upcoming third-quarter earnings season to supply the next round of fundamentalists to help support these valuation levels. For now, the persistent crude oil price stability and continued DII backing are key factors behind favorable market sentiment.
