- Nifty ends above 25,200; PSU banks and asset managers lead sectoral gains.
- U.S. futures mixed as investors await PPI data and digest bank earnings.
- Tariff tensions resurface with new U.S. trade moves impacting inflation sentiment.
Indian equity indices closed marginally higher in a tightly rangebound session on Wednesday, as traders remained cautious ahead of critical inflation data.
Meanwhile, Wall Street appeared mixed in pre-market trading, with the Dow Jones futures climbing while Nasdaq-100 futures dipped. Investors remain focused on the upcoming U.S. Producer Price Index (PPI) report, expected to show a modest rise.
Markets Cautiously Optimistic as Earnings Lift Sentiment, Trade Tensions Simmer
Despite a largely flat close, the Indian stock market showed underlying resilience, particularly in the broader indices. Midcap and smallcap stocks gained modestly, reflecting a positive undertone driven by sector-specific catalysts. The market is also receiving support from expectations of robust Q2 earnings across several sectors, especially financials and auto.
Among the top movers, Dixon Technologies surged nearly 4% after acquiring a controlling stake in Kunshan Q Tech Microelectronics India, signaling growth through strategic expansion. On the other hand, Ashok Leyland witnessed a sharp 50% fall—not due to any negative news, but because of a 1:1 bonus share adjustment, which is a technical correction in price rather than sentiment.
In the U.S., positive earnings reports from major banks like Bank of America and Goldman Sachs helped offset market jitters. However, net interest income shortfalls and inflation uncertainty due to new tariffs are keeping traders on edge. Economists are watching closely to see whether services and housing inflation can cool enough to balance rising goods costs.
Technically, Nifty’s sustained hold above the 50-day moving average is viewed as a bullish sign. A breakout above 25,260 could act as a catalyst for a rally towards 25,500 and higher. Traders are advised to follow a “buy on dips” strategy while remaining cautious of global headwinds and potential volatility from inflation data.
As earnings season gains traction and inflation data looms, the market continues to tread carefully but optimistically. Sector-specific strength and technical support points hint at bullish momentum, while global developments warrant a watchful approach.
“In investing, what is comfortable is rarely profitable.” – Robert Arnott
