Markets open steady amid global uncertainty; Gold near record highs

New Delhi [India], October 15 (ANI): Indian markets opened on a cautious note on Wednesday, following mixed global cues and renewed concerns over the U.S.-China trade tensions. At 9:40 a.m., the BSE Sensex was at 82,287.67, up 257.69 points or 0.31 per cent, while the NSE Nifty 50 stood at 25,230.10, up 84.60 points or 0.34 per cent.

According to SBI Securities, benchmark indices had ended 0.4 per cent lower on Tuesday. "Benchmark Indian equity indices ended 0.4 per cent lower on Tuesday. FIIs net sold shares worth Rs 1,509 crore while DIIs net bought shares worth Rs 3,661 crore," it said.

SBI Securities said the rebound in early trade today came amid positive cues from Asian markets, which opened in the green, and a largely steady performance from U.S. indices overnight.

Gold and silver prices edged higher amid heightened geopolitical uncertainty. "Gold prices rose above USD 4100, hovering near record highs; while Silver too inched higher in the first half but witnessed higher swings in the next, hovering around USD 50," said Manav Modi, Analyst - Precious Metals, Motilal Oswal Financial Services Ltd.

He added that safe-haven demand continued as the U.S.-China trade dispute deepened and expectations grew for possible U.S. interest rate cuts.

Manav quoted that U.S. Federal Reserve Chair Jerome Powell, speaking at the NABE conference, said the American labour market remains subdued but noted that the economy "may be on a somewhat firmer trajectory than expected."

He mentioned that Powell stated the interest rate decisions would continue to be taken on a "meeting-to-meeting" basis, considering the tariff impact on inflation and employment pressures.

"MF in their WEO yesterday raised their global growth forecast for 2025 amidst better-than-expected tariff and financial conditions, but also signalled caution amidst the US-China trade war," Manav noted.

He highlighted that US President Trump said his administration planned to produce a list of "Democrat programs" that would be closed as a result of the federal government shutdown. "There are several data points like CPI, Retail sales and others set to release later this week; however, if the US shutdown persists, these data, along with jobs data, could be postponed," Manav said.

Echoing this, banking and market expert Ajay Bagga said, "US markets suffered a Trump Social Media Post tantrum once again after a dovish Fed Chair speech led to some gains. The US-China trade talks will be the key catalyst as US markets shrugged off a strong start to the earnings season and a dovish Fed talking of loosening restrictive monetary policy. Volatility is up, and markets are being strung along on Trump rhetoric."

Bagga also mentioned that Indian markets are flat to positive, with a blockbuster mega IPO listing helping primary market sentiments. "October will see over USD 5 billion of primary fundraising in India, a record high. IMF has reaffirmed the India GDP growth forecast for 2025 while slightly lowering the 2026 number on the back of tariff impact," he said. (ANI)

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