Indian Markets Rise on Inflation Data, Remain Cautious

Indian equity markets opened higher, driven by a sharper-than-expected drop in retail inflation to a six-year low of 2.1%, improving investor sentiment and raising prospects of interest rate cuts. Despite this, recent sessions saw declines due to selling in IT stocks, weak earnings, and foreign investor outflows. Sectoral gains were noted in auto, pharma, realty, and consumer durables, while IT underperformed due to earnings downgrades and deferred orders. Globally, optimism was supported by the suspension of reciprocal tariffs and easing geopolitical tensions, but uncertainty over US trade negotiations and upcoming Q1 corporate earnings continues to weigh on sentiment. Technical analysis suggests the Nifty 50 may trade rangebound between 24,900 and 25,500, with risks if it falls below 25,000. Overall, hopes for economic recovery and strong recent earnings persist, even as market participants monitor global and domestic headwinds.