NEW DELHI: Indian stock indices extended their gains for the third day. At the day’s closing, Sensex and Nifty were 0.2 per cent up each. Buying at lower levels seemed to have supported the indices, that were otherwise volatile due to Trump tariff concerns.
“The domestic market continued its positive momentum, as part of the recent correction was justified by valuation. The sustainability of the relief rally depends on a revival in fundamentals,” said Vinod Nair, Head of Research, Geojit Financial Services.
“In light of trade uncertainties and growth concerns, today’s FED policy and the commentary will be keenly watched by investors to get cues on interest rates,” Nair added.
On Tuesday, Sensex had risen 1,131.31 points or 1.53 per cent, and the Nifty 325.55 points or 1.45 per cent.
“We are of the view that the short-term texture of the market is still on the positive side, but due to temporary overbought conditions, we could see range-bound activity in the near future,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
A comfortable inflation number in February also somewhat supported the domestic equity indices, which were on a decline over US tariffs-related uncertainty and continued outflow of funds. Uncertainties around the tariffs were causing more volatility.
Since assuming office for a second term, US President Donald Trump has reiterated his stance on tariff reciprocity, emphasising that the United States will match tariffs imposed by other countries, including India, to ensure fair trade. This has likely kept investors on tenterhooks.
Sensex is now over 10,000 points below its all-time high of 85,978 points. It has slumped over 4 per cent this New Year.
Weak domestic economic growth and corporate earnings have also been reflected in the domestic stock markets.
In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each.
Weak GDP growth, foreign fund outflows, rising food prices, and slow consumption were some of the hurdles, keeping many investors at bay in 2024. (ANI)
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