Indian Benchmark Indices Trade Flat at Midday; Foreign Investors Fuel Market Momentum

Broader indices participated in the rally, with the Nifty Mid-cap and Nifty Small-cap indices rising by 0.29 per cent and 0.39 per cent, respectively.

Market Update at 12:15 PM: India's benchmark indices moved higher on Tuesday, driven by optimism around a potential trade agreement with the U.S. and sustained foreign inflows. By 12:05 PM, the Nifty 50 was trading flat, down by 0.03 per cent to 24,421, while the BSE Sensex edged up 0.13 per cent to 80,255. 

Foreign portfolio investors have poured USD 4.1 billion into Indian markets over the past nine sessions, marking the most consistent buying streak since July 2023, with the Nifty climbing 6.6 per cent during this period.

Markets appeared to look past geopolitical tensions involving Pakistan, focusing instead on economic developments. Broader indices also participated in the rally, with the Nifty Mid-Cap and Nifty Small-Cap indices rising by 0.29 per cent and 0.39 per cent, respectively.

In the stock-specific action, auto component firms Samvardhana Motherson and Sona BLW each gained 3 per cent, while Bharat Forge added 2.5 per cent after remarks from the U.S. commerce secretary indicated steps to ease auto tariffs. Reliance Industries extended its rally, climbing 1.4 per cent following a 5.3 per cent jump on Monday, buoyed by stronger-than-expected earnings.

Market Update at 10:00 AM: India's key stock indices opened slightly higher on Tuesday, supported by reduced trade tensions and consistent foreign investment inflows into the domestic market.

At 9:15 a.m. IST, the Nifty 50 was up 0.17 per cent at 24,370.7, while the BSE Sensex rose 0.22 per cent to 80,396.92.

Gains were also seen across broader Asian markets, with the MSCI Asia ex-Japan index climbing 0.5 per cent. Meanwhile, the U.S. dollar faced its sharpest monthly decline in years, as investors anticipated the impact of ongoing trade negotiations on corporate earnings and economic data.

Apart from the real estate sector, all major industry groups recorded gains at the opening bell. The broader mid-cap and small-cap indices also advanced, rising 0.3 per cent and 0.6 per cent, respectively.

Pre-Market Update at 8:00 AM: Indian markets are expected to open cautiously on Tuesday, tracking mixed global cues. While Asian equities traded in positive territory, US markets ended Monday on a mixed note. The S&P 500 extended its winning streak to five sessions — the longest since early November — with a modest gain.

At 7:30 AM, Gift Nifty was hovering around 28,482, indicating a premium of about 13 points over the previous close of Nifty futures, suggesting a flat opening for domestic indices.

In the US, investors remained cautious ahead of major tech earnings and key economic data. Uncertainty around US-China trade discussions also weighed on sentiment. The Dow Jones Industrial Average rose 114.09 points, or 0.28 per cent, to 40,227.59. The S&P 500 added 3.54 points, or 0.06 per cent, to 5,528.75, while the Nasdaq Composite slipped 16.81 points, or 0.10 per cent, to 17,366.13.

US Treasury Secretary Scott Bessent stated that several major trading partners, including India, have made "very good" offers to avoid new tariffs. Additionally, China’s move to exempt some US products from tariffs signals an effort to ease trade tensions.

On the domestic front, India's industrial production growth stood at 3 per cent in March, similar to the previous month. However, year-on-year growth slowed from 5.5 per cent, reflecting weakness in the manufacturing, mining, and power sectors. For FY24-25, the Index of Industrial Production (IIP) expanded at a four-year low of 4 per cent, down from 5.9 per cent in FY23-24.

In Asia, markets edged higher as investors monitored trade talks between the US and regional economies. Japanese markets remained closed for a public holiday. South Korea’s Kospi traded flat, while the Kosdaq gained 0.39 per cent. Hong Kong’s Hang Seng futures traded slightly higher, rising 0.03 per cent.

Gold prices edged lower as easing trade tensions reduced the metal’s safe-haven appeal. Spot gold declined 0.3 per cent to USD 3,332.99 per ounce.

Crude oil prices also slipped on concerns over global demand amid the ongoing US-China trade uncertainty. Brent crude futures fell 0.4 per cent to USD 65.61 per barrel, while US WTI crude futures dipped 0.3 per cent to USD 61.87 per barrel.

The US dollar stabilised after earlier losses, with the dollar index last seen at 99.079 against a basket of major currencies.

Foreign Institutional Investors (FIIs) were net buyers, investing Rs 2,474.10 crore on April 25, 2025. Domestic Institutional Investors (DIIs) also remained net buyers with purchases worth Rs 2,817.64 crore.

Only RBL Bank is banned for trading in the F&O segment today..

Disclaimer: The article is for informational purposes only and not investment advice.