Indian Markets Open Higher Amid Mixed Asian Trends

On Monday, Indian equities began the trading session on a positive note, buoyed by mixed signals from Asian markets. The Nifty index rose by 0.44 percent or 108.8 points, starting at 24,962.85. Similarly, the 30-share BSE Sensex gained 0.59 percent or 476.66 points, opening at 81,701.41.

The Bank Nifty continued its upward trend from the previous day, driven by strong performances from major banking stocks such as HDFC Bank, ICICI Bank, Axis Bank, SBI, and Federal Bank. Notably, HDFC Bank experienced a significant rally following its impressive Q2 results, with net interest margins remaining steady year-on-year. Global brokerage firm Goldman Sachs issued a buy recommendation for HDFC Bank, suggesting a potential upside of 28 percent.

At the close of the previous trading day, HDFC Bank shares had risen by 2.9 percent, or Rs 48.75, to settle at Rs 1,729.9, having reached a high of Rs 1,734.45 during the day. The stock had previously achieved an all-time high of Rs 1,791.9 on July 3, 2024.

Sector-wise performance showed that some indices, including Auto, FMCG, Media, and Oil & Gas, faced declines.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked that with U.S. markets hitting new record highs, the global stock market rally remains strong. The consistent drop in crude prices and the steadiness of U.S. bond yields bolster the resilience of equity markets, despite ongoing geopolitical tensions in the Middle East.

He also noted the potential impact of the Chinese stimulus efforts combined with the attractive valuations of Chinese stocks, which may sustain the preference for 'Sell India, Buy China' strategies for some time. Furthermore, since a significant portion of total foreign institutional investor (FII) assets under management is in financials, the extended FII selling has made valuations appealing in an otherwise expensive market. The latest Q2 results from major banking firms like HDFC, Kotak, and Axis indicate positive trends ahead.

Meanwhile, Asian markets displayed mixed performances, with China's Shanghai Composite index rising by 0.6 percent, driven by unexpected rate cuts from the People's Bank of China.

Stock, Market, India