Mumbai: Indian stock markets started the day on a positive note on Wednesday, even as global markets including US and Europe faced pressure.
The Nifty 50 index opened at 22,536.35, gaining 38.45 points or 0.17 per cent, while the BSE Sensex opened at 74,270.81, up by 168.49 points or 0.23 per cent.
On Tuesday, U.S. President Donald Trump reassured investors that he does not see a risk of a U.S. recession. His statement helped U.S. markets recover some of their earlier losses, easing concerns among investors. However, many remain cautious about the overall market direction.
Experts noted that the portfolio managers are taking a careful approach to manage the uncertainty. They are keeping extra cash reserves, reducing investments in overvalued stocks, and diversifying their portfolios to avoid risks related to Trump's trade policies.
Compared to his first term, Trump seems more comfortable with market fluctuations, leading to the belief that his administration is less likely to intervene to support stock markets.
Ajay Bagga Banking and Market Expert told ANI, "Yesterday Trump conceded to the media that he does not see a threat of a US recession. Markets got reassured somewhat and rallied into the close, reducing their Tuesday cuts. How do portfolio managers manage in these uncertain times? By keeping some powder dry, by getting out of high valuation narrative stocks and by diversifying away the Trump Tariff risk. Hopes of a Trump Put have been belied as the Pain Threshold of Trump 2.0 is much higher than Trump 1.0. More market falls are acceptable to President Trump this time around".
Another sign of investor caution is the rise in U.S. money market funds, which have now crossed USD 7 trillion in assets under management.
This suggests that many investors are avoiding riskier assets and shifting towards safer investments like gold, silver, and short-term U.S. Treasuries. With frequent changes in economic policies and global trade uncertainty, many experts believe that patience is the best strategy for investors
Most sectors in Indian stocks saw gains, except for Nifty IT, which declined by 1.14 per cent due to weak sentiment from U.S. markets. In the Nifty 50 index, 32 stocks opened in green, while 16 stocks saw a decline, showing overall strength in the Indian markets.
Akshay Chinchalkar, Head of Research, Axis Securities said, "The Nifty's recovery yesterday from the opening drop clearly shows that bulls are in play. Although the rebound traced a bullish "piercing line" formation, bulls will be emboldened further only if Monday's high of 22677 breaks, with a first objective in the 22720 - 22798 area. For this to happen though, we need to hold above support at 22245. Anything under that, and critical support at 22117 will most likely be tested. For now, bulls have a slight edge".
Meanwhile, Asian markets performed well on Wednesday. Taiwan's Weighted Index surged by 1.43 per cent, South Korea's KOSPI gained 1.47 per cent, and Indonesia's Jakarta Composite rose 1.24 per cent. However, Hong Kong's Hang Seng Index declined slightly by 0.13 per cent. (ANI)