Indian equities opened on a subdued note Tuesday amid fresh concerns over a threat by former US President Donald Trump to impose higher tariffs on India over its purchase of Russian oil.
As of 9:30 a.m., the Sensex fell 199 points or 0.25% to 80,819, while the Nifty slipped 44.05 points or 0.18% to 24,678.70.
The Nifty Midcap 100 index was down 0.17%, while the Nifty Smallcap 100 index edged up 0.19%.
Among sectoral indices, Nifty FMCG was the biggest loser, down 0.55%. The Nifty Bank declined 0.12%, and the Nifty IT index slipped 0.25%.
“On the technical front, Nifty breaking above the high of 24,956 can reverse the short-term downtrend. Until then, bears have the upper hand,” said Vikram Kasat, Head – Advisory, PL Capital.
He added that Nifty’s immediate support levels are 24,550 and 24,442, with resistance zones at 24,900 and 25,000. “If the index holds above the 24,600 mark, a bounce toward the 24,900–25,000 zone can be expected.”
Analysts suggested that investors may prefer a wait-and-watch approach, with some possibly moving funds to fixed-income assets. They noted that strong domestic economic data and optimism ahead of the RBI Monetary Policy Committee (MPC) meeting, where a 25 bps rate cut is anticipated, could provide support to the market.
However, concerns remain following reports that Donald Trump has threatened to increase tariffs on India due to its oil purchases from Russia — a development that could dampen investor sentiment.
In the Nifty pack, Coal India, Maruti Suzuki, SBI, and Dr. Reddy’s Laboratories were among the top gainers, while HDFC Bank, Reliance Industries, Hindustan Unilever (HUL), ICICI Bank, and Tata Consumer Products were among the top losers.
Overnight, US markets rebounded sharply. The Dow Jones climbed 1.34%, the Nasdaq Composite surged 1.95%, and the S&P 500 rose 1.47%.
“Bulls are increasingly confident that the US Federal Reserve will have to cut interest rates in September. The odds of a rate cut jumped to 92.1%, up from under 40% on Friday, ahead of the July employment report,” Kasat noted.
Asian markets opened on a positive note. South Korea’s Kospi 200 rose 1.09%, China’s Shanghai Composite gained 0.52%, Japan’s Nikkei 225 added 0.63%, and Hong Kong’s Hang Seng Index edged up 0.14%.
On Monday, foreign portfolio investors (FPIs) were net sellers of Indian equities worth ₹2,566 crore, while domestic institutional investors (DIIs) were net buyers to the tune of ₹4,386 crore.
— IANS
