Nifty 50 index in India rises 0.07% pre-market.

Nifty 50 index in India rises 0.07% pre-market.

The Nifty 50 index in India opened with a 0.07% gain in pre-market trading on May 8, 2025. This positive start follows a series of encouraging developments in the Indian financial sector. Foreign portfolio investors (FPIs) have been actively buying Indian financial stocks, with April witnessing the third-highest monthly inflows into the sector [1]. This trend is attributed to easing global trade tensions, expectations of a U.S.-India trade agreement, and attractive valuations [1].

Key drivers for the Nifty 50 index's pre-market rise include the following:

1. Foreign Investor Activity: FPIs invested 184.09 billion rupees ($2.18 billion) in Indian financial stocks during April, contributing to a 4.1% rise in the Nifty Financial Services index [1]. The second half of April saw record inflows of $2.71 billion, indicating strong investor confidence [1].

2. Economic Outlook: A positive economic outlook for India, coupled with better-than-expected earnings from top private banks like HDFC Bank and ICICI Bank, has bolstered market sentiment [1].

3. Trade Developments: The U.S. paused its reciprocal tariffs on April 9 and signaled a potential bilateral trade deal with India, which has positively impacted investor sentiment [1].

4. Sector-Specific Movements: While IT stocks faced outflows worth $1.80 billion due to U.S. economic concerns, other sectors such as oil & gas, FMCG, and IT stocks showed significant gains, contributing to the overall market positivity [2].

5. Market Sentiment: Early trading data from Stocktwits indicates a bullish sentiment for the Nifty 50, with the index trading above key resistance levels [2].

Investors are closely watching the day's trade set-up, with immediate resistance identified at 24,450–24,600 and support at 24,200 and 24,000 [2]. Analysts recommend initiating long positions only after a decisive close above 24,450 to confirm the continuation of the uptrend, with tight stop-loss orders advised to manage potential volatility.

In conclusion, the Nifty 50 index's pre-market rise on May 8, 2025, reflects a combination of positive economic indicators, strong FPI activity, and a favorable trade environment. Investors should remain vigilant and monitor key resistance and support levels as the market continues to evolve.

References:

[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3RF0DT:0-foreign-investors-boost-purchases-of-india-s-financial-shares-in-april/

[2] https://stocktwits.com/news-articles/markets/equity/india-stock-market-nifty-sensex-rise-in-early-trading-sebi-ra-point-to-key-resistance-levels/chi5n3FRbKe