The Multi Commodity Exchange of India (MCX) experienced an unexpected interruption in trading this morning due to a technical glitch. This issue led to a temporary suspension of all commodities trading activity just after the markets opened.
An official message posted on the MCX website
confirmed the disruption and stated that trading is expected to resume by 9:45 AM. Until then, all commodity
transactions on the platform remain paused.
While commodity trading was facing technical
hurdles, the Indian equity markets opened strong, showing positive momentum
early in the session. Both the benchmark indices Nifty 50 and BSE
Sensex started the day on a bullish note, backed by improved investor
sentiment.
The Nifty 50 opened at 25,138.50, gaining 77.60 points or 0.31%, while the Sensex began at 82,429.66, up by 242.85 points or 0.30%. Analysts believe this rally is
largely influenced by the recently announced trade agreement between the United States and Japan,
which significantly reduced tariff concerns.
This bilateral deal lowered tariffs on
Japanese goods from the previously expected 25% to 15%, which has come as a
huge relief to investors. Asian stock markets, including India, have responded
positively to the news. Japanese automobile stocks surged by as much as 15% in early Tokyo trade, reflecting
market confidence.
Financial expert Ajay Bagga noted that the Indian markets have held
crucial support levels despite past uncertainties. He added, “The US-Japan
trade deal raises hopes that India might also strike a similar agreement with
the US. If that happens, we may see a significant short-covering rally and
possibly a retest of the all-time highs seen in September 2024.”
In broader market action, the performance was
mixed. While some indices moved up, others remained under pressure. The Nifty Auto Index surged by 1%, helped by enthusiasm around Japanese
automobile stocks. The Nifty Metal
index rose by 0.36%, and Nifty PSU Bank climbed 0.16%. On the other hand, sectors like FMCG, IT, and Media
faced mild declines.
Looking at mid and small-cap performance:
·
Nifty 100
gained 0.15%
·
Nifty 200
moved up 0.10%
·
Nifty
Midcap dipped by 0.14%
·
Nifty
Smallcap 100 dropped 0.33%
Despite the gains, some technical analysts
remain cautious. According to Akshay
Chinchalkar, Head of Research at Axis Securities, "The Nifty
closed yesterday at 25,061 after breaking above the first hurdle of 25,144.
However, it couldn’t close above it, which is a concern. Unless we get a solid
close above 25,340, it’s hard to say the bulls are fully in control."
Another expert, Vikram Kasat, Head of Advisory at PL Capital, explained
that the market is in a tug-of-war between bulls and bears. He emphasized that
the 40-hour exponential moving average
(40HEMA) now stands at 25,104.
A strong close above this level, especially above 25,182, could indicate a trend reversal. If the Nifty
falls below 24,882, that would
act as a major support level.
Investors are now closely watching
developments between India and the United States, hoping for a similar trade
agreement. If such a deal is announced, it could provide the next big push to
Indian markets, especially at a time when global economic sentiments are
improving.
As for MCX, traders and brokers are hopeful
that the technical issue will be resolved soon, allowing trading to resume by
the expected time. This isn’t the first time such an event has occurred, but
timely communication and rapid resolution are key to maintaining investor
confidence.
In conclusion, even though MCX trading faced a temporary glitch today, broader market sentiment remains upbeat thanks to positive global developments. All eyes are now on trade relations and whether India can negotiate a deal that mirrors the recent US-Japan breakthrough.
