Domestic markets opened on a positive note on Tuesday, recovering from recent selling pressure with both benchmark indices registering strong gains in early trade. Nifty 50 opened at 22,878.45, rising 365.80 points or 1.62 per cent, while BSE Sensex surged 1,516.08 points or 2.09 per cent to 74,212.47. According to Ajay Bagga, banking and market expert, some investors are making profits by taking positions ahead of market-moving posts and announcements, despite ongoing global uncertainties. As per ANI, Bagga noted that "someone is making hay while the world is still not out of the woods — or rather, still not out of the Strait of Hormuz."
Asian markets traded mixed in early deals on Tuesday, reflecting cautious global risk sentiment, as reported by The Hindu BusinessLine. Brent crude remained elevated at USD 104 per barrel after briefly slipping below USD 99 per barrel on Monday, with global tensions continuing to weigh on investor sentiment. US stock futures are down 0.4 per cent, while gold prices extended their decline with 24-karat gold priced at ₹1,37,370 per 10 grams and silver prices fell sharply by more than 3 per cent to ₹2,17,823 per kg. According to Bagga, "this morning, Asian markets have given up some of their early gains. Oil is slightly higher, the US dollar is stronger, while gold and silver have been falling over the past 25 days." Despite the recovery, uncertainty continues to weigh on investor sentiment.
In a surprising development on Monday, President Donald Trump paused planned military strikes on Iran's energy grid for five days, citing progress in secret negotiations, as reported by ANI. However, Iran has dismissed these claims as "fake news," maintaining that no direct dialogue has taken place. Despite the pause, global tensions remain elevated, with the Strait of Hormuz continuing to be a key flashpoint. Market experts note that there is massive volatility driven by social media posts that are quickly denied by adversaries, followed by strong rebuttals. Bagga emphasized that "there is massive volatility driven by social media posts that are quickly denied by adversaries, followed by strong rebuttals."
Sectoral indices on the NSE reflected broad-based buying with all sectors opening in the green. Nifty Auto surged over 2 per cent, Nifty PSU Bank rose 2.40 per cent, Nifty IT gained 1.46 per cent, Nifty FMCG advanced 1.44 per cent, Nifty Metal jumped 2.31 per cent, Nifty Pharma climbed 1.15 per cent, and Nifty Private Bank added 1.62 per cent. In the commodities segment, gold prices extended their decline while silver prices also fell sharply by more than 3 per cent to ₹2,17,823 per kg. Other Asian markets also traded higher, with Japan's Nikkei 225 rising 0.75 per cent to 51,920, Singapore's Straits Times gaining 0.13 per cent to 4,849, Hong Kong's Hang Seng climbing 1.75 per cent to 24,797, Taiwan's Weighted index remaining flat at 32,697, and South Korea's KOSPI surging more than 2 per cent to 5,522.
India VIX remained stable at 12.84, continuing to reflect a low-volatility environment that has supported the recent uptrend, according to Om Mehra, Technical Research Analyst at SAMCO Securities, as reported by The Hindu BusinessLine. This stability in volatility indicators suggests market participants are adopting a cautious but measured approach to current market conditions, despite the recovery from recent selling pressure. However, as noted by Bagga, "it was encouraging to see Gift Nifty up over 800 points last night, but it is now up around 350 points compared to Monday's market close in India," indicating some moderation in early optimism.
