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Sensex, Nifty kick off strong. But will the cheer last?

Benchmarks open higher on global cues, but profit-booking may spoil the mood

Benchmarks open higher on global cues, but profit-booking may spoil the moodAdobe Stock

Dalal Street opened in the green this morning (July 23, 2025), riding on the coattails of a global rally. Sensex jumped nearly points and Nifty crossed 25,100 in early trade, tracking upbeat cues from Asian peers after a US-Japan trade deal soothed nerves across markets.

But as we've seen before, mornings can be misleading. Will the rally sustain or fizzle out by the closing bell?

Why the optimism?

  • US-Japan trade truce: The two nations struck a fresh deal, cooling global trade tensions. Asian markets rallied, and India joined the party.
  • Earnings support: Positive earnings from index heavyweights have kept the sentiment upbeat.
  • Foreign inflows: FIIs are tiptoeing back into Indian equities, adding fuel to the fire.

But here’s the flip side…

Markets have had a good run in the past month. With Nifty already up over 7 per cent in the last six months, profit-taking could kick in anytime.

Plus, macro worries like sticky inflation and oil prices still linger. A strong dollar could also trigger FII outflows.

What should investors do?

If you're already invested, enjoy the ride—but don't forget your seatbelt. This might just be a short-term bounce. For fresh investments, stagger your entry. Don't chase the rally blindly.

Stick to strong fundamentals. Sectors like banking, capital goods, and FMCG look relatively better placed right now.

Serious about wealth? So are we.

Markets will always move up and down. Chasing every swing only adds stress—not wealth.

At Value Research Stock Advisor, we help you cut through the noise with expert-backed stock recommendations designed for long-term compounding.

Stop reacting. Start building.

Check it out now.

Disclaimer: This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.

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