The Indian stock market opened on a steady note on Tuesday, with the Sensex gaining 150 points and the Nifty crossing the 25,000 mark. Investors appeared cautious, anticipating potential profit-taking as benchmark indices hover near record highs.
Globally, the recent rally driven by hopes of a U.S. interest rate cut has lost momentum, adding to the cautious sentiment in the market.
Market conditions are currently influenced by both positive and negative factors. On the downside, geopolitical tensions in the Middle East and Ukraine are escalating, contributing to uncertainty. Additionally, Brent crude prices have surged past $81 per barrel, putting pressure on the market.
However, there is a strong positive influence as well. The expectation of rate cuts by the U.S. Federal Reserve is providing a significant tailwind, which could extend to other central banks, including the Reserve Bank of India (RBI).
“The Indian economy is in need of monetary stimulus through rate cuts, which are likely to be considered in the next policy meeting,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
As the market navigates these mixed signals, broader markets are showing stronger performance, suggesting a cautious yet optimistic outlook among investors.
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