Benchmark stock market indices opened higher on Friday as investors hoped for positive outcomes from Prime Minister Narendra Modi’s meeting with US President Donald Trump.
The S&P BSE Sensex was up 86.75 points to 76,225.72, while the NSE Nifty50 added 12.50 points to 23,043.90 as of 9:46 AM.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that early indications from the Modi-Trump talks are positive from the market perspective.
“The threatened reciprocal tariffs have been delayed leaving room for further negotiations and a possible deal. India’s willingness to buy more oil & gas from the US can help reduce the trade deficit with the US. Even though Trump is unlikely to back down on reciprocal tariffs, India is treated as a friendly country and the bonhomie between the two leaders augurs well for India,” he added.
The oversold market can bounce back in the near-term but a sustained rally is unlikely since the FIIs continue to be on sell mode. Only a decline in dollar and US bond yields will turn the FIIs into buyers. So watch out for this space.
The ongoing divergence in the market’s preference in favour of largecaps over mid and small caps will continue. Some of the top holdings in small cap mutual funds now are mega caps.
