Indian Markets Open Higher on Q2 Results and Global Economic Cues

The Indian equity benchmark indices, Nifty50 and BSE Sensex, opened higher today, indicating positive investor sentiment. Market trajectory in the short term is expected to be influenced by the ongoing second-quarter financial results and global economic indicators. Positive developments in US-India trade talks could further boost market confidence, particularly benefiting export-oriented sectors.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that while yesterday's holiday shielded the Indian market from mild global turbulence, stability is returning today. The market's attention is now on US Supreme Court proceedings concerning Trump tariffs. Observations suggesting President Trump may have overstepped his authority could lead to significant market volatility, potentially benefiting emerging markets like India if tariffs are impacted.

However, the near-term outlook is tempered by sustained selling from Foreign Institutional Investors (FIIs), who have divested Rs 15,336 crore in the last five days, and an increase in FII short positions, which are exerting downward pressure on markets.

Additionally, the outcome of the New York City mayoral race, with Zohran Mamdani's victory, could influence Wall Street's business environment. Oil prices remained stable near two-week lows due to weak demand and ample global supply.

**Impact** 8/10

**Difficult Terms** Foreign Institutional Investors (FIIs): Investors from foreign countries who buy shares and other securities in Indian markets. Domestic Institutional Investors (DIIs): Investors from within India who buy shares and other securities in their home market. Trump Tariffs: Trade taxes imposed by the United States government under President Donald Trump on specific imported goods. Emerging Markets: Countries with developing economies that are experiencing rapid growth and industrialization, often seen as having higher potential returns but also higher risk.