Bullish trend to continue for Nifty, Sensex amid global turnaround

Domestic markets are expected to sustain the rally on Wednesday thanks to positive global cues. The US stocks overnight jumped over 2.5 per cent after the US President Donald Trump said he had no plans to dismiss the head of the Federal Reserve Jerome Powell, which had badly shaken investor confidence in US assets. Further boosting investors’ confidence Trump also reiterated he wanted to do a deal with China on tariffs.

Stock markets across the Asian were enjoying a much-needed relief rally, with Nikkei jumping over 2 per cent.

Gift Nifty at 24,385 signals a gap-up opening of about 200 points for Nifty. Analysts expect the market to remain volatile ahead of expiry but will see some buying at lower levels.

Analysts are closely monitoring the behaviour of foreign portfolio investors who recently pumped in nearly $2 billion.

Narinder Wadhwa, Managing Director & CEO of SKI Capital Services Ltd, said the recent turnaround in FII activity, with over $2 billion in Indian equities bought in just four five sessions, after months of outflows, reflects a shift in sentiment — driven by a mix of valuation, macro stability, and sectoral attractiveness.

According to hm, as long as macro indicators remain steady and earnings deliver, the positive FII sentiment can sustain, in the short term.

However, for the medium-term, continuation of their buying will hinge on sustained earnings growth across key sectors, global liquidity conditions, commodity prices and stability in currency and bond yields.

“We expect the gradual up-move to continue in the market on hopes of a Bilateral Trade Agreement between India and the US, sustained FII buying and supportive RBI policies. While action would continue on the stock/ sector front on the back of Q4 corporate earnings. Companies like LTI Mindtree, TATA Consumer, Bajaj housing, 360 One WAM, amongst others, will announce results on Wednesday,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Published on April 23, 2025