Market Opening Overview

On Thursday, the domestic share market began on a stable yet optimistic note as geopolitical tensions subsided, prompting investors to take a cautious stance ahead of the impending US tariff deadline set for July 9.

The Nifty 50 index commenced at 25,268.95, reflecting an increase of 24.20 points or 0.10%. Meanwhile, the BSE Sensex opened at 82,886.41, up by 130.90 points or 0.16%. Analysts noted that with geopolitical uncertainties diminishing, investor attention has shifted back to the US Federal Reserve and the upcoming trade tariff deadline.

Ajay Bagga, a banking and market expert, commented, "With geopolitical risks easing and a successful NATO summit where European nations agreed to enhance defense spending, the markets have reacted positively, alleviating concerns over US isolationism. The focus has returned to the US Fed and the approaching trade tariffs deadline. Jerome Powell's testimony to the Senate was as anticipated and did not significantly impact the markets. US markets have rebounded from the previous fortnight's risk-off sentiment, but the next upward movement will hinge on the US PCE data released on Friday and, crucially, any relief from the impending reciprocal tariffs."

During the opening session, broader market indices exhibited moderate strength. The Nifty Midcap index increased by 0.28%, while the Nifty Smallcap index rose by 0.42%. Among the sectoral indices on the National Stock Exchange, all sectors except Nifty IT recorded gains. The Nifty PSU Bank index led the way with a 0.29% increase, followed closely by Nifty FMCG, which rose by 0.25%. Nifty Auto and Nifty Realty also showed positive movement, climbing by 0.23% and 0.15%, respectively.

In terms of individual stock performance, the leading gainers on the Nifty 50 included BEL, Nestle India, JSW Steel, Bharti Airtel, and Eternal. Conversely, the top losers were Dr Reddy, Tech Mahindra, Kotak Bank, ICICI Bank, Trent, and Shriram Finance.

Akshay Chinchalkar, Head of Research at Axis Securities, stated, "The Nifty continued its near-term rally yesterday, gaining 200 points. From a technical perspective, the price action has traced an inside day, indicating a potential for a significant single-day trending move. Immediate resistance is observed in the 25,310 to 25,360 range and higher at 25,500, while immediate support lies between 24,960 and 25,010. Should the market dip below this, the bulls need to defend the 24,800 level to maintain a trajectory towards the 25,500-25,800 area."

In the Asian markets, Japan's Nikkei 225 index experienced robust gains exceeding 1%. However, Hong Kong's Hang Seng Index saw a decline of 0.3%. Taiwan's Weighted index remained nearly unchanged with a 0.19% increase, while South Korea's KOSPI index fell sharply by 1.86% at the time of this report.