Indian stock markets opened with a slight uptick, reflecting increased investor confidence. Both major indices started the day in positive territory. The Nifty 50 index opened at 25,067.05 points, up by 0.34%, while the BSE Sensex opened at 81,832.66 points, gaining 365.56 points.
Market analysts indicate that volatility continues to characterize the trading environment, suggesting that a level-based trading approach would be prudent for traders. This positive sentiment is partly attributed to the Reserve Bank of India‘s (RBI) recent decision to adopt a neutral stance, which was communicated on Wednesday.
“After an initial rally in the first half of the day, the market faced resistance around the 25,200 and 81,300 levels and experienced a sharp correction in the latter half due to profit booking. The market declined by over 285 points on the Nifty and 950 points on the Sensex from their intraday highs. Given the current market volatility, we recommend that day traders focus on level-based trading strategies,” advised Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Across other Asian markets, positive buying trends were also observed. Japan’s Nikkei 225 index rose by 0.30%, Hong Kong’s Hang Seng index surged by 3.32%, and South Korea’s KOSPI index increased by 0.71%.
In the United States, markets closed higher on Wednesday, with the S&P 500 gaining 0.71% and the Nasdaq rising by 0.60%. A CNN report suggested that Wall Street is increasingly optimistic about avoiding a recession, and investors are looking ahead to the upcoming earnings season for further signs of economic stability.
In contrast, on Wednesday, domestic benchmark equity indices, including the Sensex and Nifty 50, ended the day in negative territory, reversing recent gains as market sentiment shifted following the RBI’s announcement to maintain current interest rates. The Sensex closed down by 167.71 points at 81,467.10, while the Nifty 50 fell by 31.20 points, settling at 24,981.95.
Investors are expected to closely watch upcoming developments both domestically and globally as markets respond to various geopolitical events.