New Delhi [India], October 7 (ANI): Indian equity markets started Tuesday on a steady note, with both benchmark indices showing marginal gains. The Sensex opened up 147.29 points to 81,937.41 at 9.38 am. The Nifty 50 inched up by 41.70 points to 25,119.35, reclaiming the 25,000 mark.

According to market data, the early uptick came as banking and metal stocks led gains, supported by positive cues from overseas markets, despite persisting geopolitical and economic uncertainties.

Banking and market expert Ajay Bagga said that Indian markets were moving in tandem with global trends, with PSU bank indices touching record levels.

'Earnings which start from October 9 will set the tone for the markets. Indian markets have underperformed the MSCI Emerging Markets index substantially. A catch-up will come eventually, but for now, foreign portfolio investors remain bearish and the surge in primary market issuances creates a liquidity drag for secondary markets,' he said.

Bagga further explained, 'Markets abhor uncertainty, but they've mastered Washington theatre.' He added that while the U.S. government shutdown entered its sixth day, American stock markets continued to hit lifetime highs.

Banking and IT sectors show early strength in opening. Pharma and metal stocks are cautious amid global cues, while realty and consumer discretionary stocks are under some pressure.

Among initial public offers (IPOs), the Tata Capital IPO is open for the second day, and the LG Electronics IPO opens for subscription today. Tata Capital was subscribed about 40 per cent on day one, Monday.

'Gold and silver continue their surge, with gold crossing USD 4,000 and silver at USD 48 levels. Cryptocurrencies are rising as well, with Bitcoin doubling in the last year to USD 125,000,' he noted.

Gold prices continued their upward trajectory, reaching fresh highs amid political and economic unease. Manav Modi, Analyst - Precious Metals Research at Motilal Oswal Financial Services Ltd, said, 'Gold prices rose to an all-time high, extending gains to a third session on U.S. economic and political uncertainties and expectations of further interest rate cuts by the Federal Reserve.'

Global developments also played a role in shaping investor sentiment. Manav said that the White House eased off earlier claims about government layoffs due to the shutdown, but warned that prolonged gridlock could lead to job losses. In currency markets, the Japanese yen tumbled sharply against the U.S. dollar after fiscal dove Sanae Takaichi was elected to lead the ruling party, signaling policy continuity.

'Kansas City Fed Bank President Jeff Schmid signaled he is disinclined to cut interest rates further, arguing that as the Fed navigates between the twin risks of overly tight and overly easy policy, it should stay focused on the danger of too-high inflation,' Manav noted. However, market projections still price in additional rate cuts in October and December, keeping investor focus on upcoming U.S. Federal Open Market Committee minutes and Federal Reserve Chair's remarks. (ANI)