Did the Indian stock market open higher with Nifty above 25,500?

Mumbai, July 1 (NationPress) The Indian benchmark indices commenced the trading day with gains on Tuesday, buoyed by favorable global signals, especially with noticeable buying activity in the auto and IT sectors early in the session.

At approximately 9:26 am, the Sensex was up by 188.66 points or 0.23 percent at 83,795.12, while the Nifty increased by 54.80 points or 0.21 percent to reach 25,571.85.

Analysts believe that the positive sentiment in the global equity markets, driven by the US market's new record highs, coupled with reduced geopolitical threats from West Asia, has contributed to this optimistic outlook.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, remarked, "Looking ahead, market movements will likely hinge on tariff developments. A trade agreement between India and the US would be beneficial; however, failure to reach an agreement could negatively affect the markets."

The Nifty Bank index also saw a rise of 51.95 points or 0.09 percent at 57,364.70 during the early trading period. The Nifty Midcap 100 index stood at 59,887.65, up by 146.45 points or 0.25 percent, while the Nifty Smallcap 100 index reached 19,127.60, climbing by 52.50 points or 0.28 percent.

Experts suggest that the Nifty's short-term outlook remains positive, as it continues to trade above its nearest moving average support, the 5-day EMA.

"The Nifty has partially filled the gap range of 25,640-25,740 created on October 3, 2024. A close above 25,740 could eliminate this gap resistance and potentially propel the Nifty towards 26,000. Immediate support is found at 25,400," stated Devarsh Vakil, Head of Prime Research at HDFC Securities.

Among the top gainers in the Sensex pack were Asian Paints, BEL, Bharti Airtel, HDFC Bank, PowerGrid, ITC, HCL Tech, Tata Motors, and Hindustan Unilever Limited. Conversely, the biggest losers included Axis Bank, Trent, Tata Steel, Sun Pharma, Tech Mahindra, Maruti Suzuki, and Eternal.

Strong fundamentals of the Indian economy may enhance fund inflows into Indian equities. A sustained weakening of the dollar (currently at 96.81) suggests that significant selling by foreign institutional investors (FIIs) is unlikely. They may continue to buy even amid high valuations, according to analysts.

On June 30, FIIs were net sellers, offloading equities worth Rs 831.50 crore, while domestic institutional investors (DIIs) acted as net buyers, acquiring shares worth Rs 3,497.44 crore.

In Asian markets, stock exchanges in China, Bangkok, Seoul, and Jakarta were in the green, while only Japan was experiencing losses.

In the previous trading session, the Dow Jones in the US closed at 44,094.77, gaining 275.50 points or 0.63 percent. The S&P 500 finished 31.87 points or 0.52 percent higher at 6,204.94, and the Nasdaq rose 96.27 points or 0.47 percent to close at 20,369.73.