India’s benchmark indices opened higher on Tuesday, buoyed by robust economic data that lifted investor sentiment, though tariff-related concerns weighed on the outlook .
The Nifty 50 rose 40.15 points, or 0.16 percent, to 24,665.15, while the Sensex gained 194.82 points, or 0.24 percent, to 80,559.31 at the open.
Ajay Bagga, Banking and Market Expert, said: “A strong macro backdrop and a robust August PMI have set a positive tone for Indian markets. While US tariffs and continued FPI outflows pose risks, these are likely to be cushioned by strong domestic inflows and a consumption push expected from GST cuts.”
Bagga added that positive announcements from the two-day GST Council meeting, beginning Wednesday, could lend further support to equities.
Recent economic indicators have bolstered market confidence: India’s manufacturing PMI for August surged to a 17-year high of 59.3, GST collections touched nearly Rs 1.90 lakh crore, GDP growth hit a five-quarter high of 7.8 percent, July’s IIP climbed to a four-month high of 3.5 percent, and two-wheeler sales posted strong growth.
Brokerage Motilal Oswal expects momentum to remain firm in two-wheelers, sugar, FMCG, and defense stocks. Meanwhile, the government’s proposed GST reforms are seen boosting local consumption, as India simultaneously looks to diversify exports to Europe, the Gulf, Africa, and other markets to offset the impact of the 50 percent US tariff.
In broader indices, the Nifty 100 opened marginally higher, while the Nifty Midcap 100 slipped 0.19 percent and the Nifty Smallcap 100 edged lower by 0.03 percent.
Sectoral performance was mixed: Nifty FMCG rose 0.21 percent, Nifty Media gained 0.86 percent, and Nifty Oil & Gas added 0.31 percent. On the downside, Nifty Auto slipped 0.24 percent, Nifty IT fell 0.41 percent, and Nifty Pharma declined 0.29 percent.
Anand James, Chief Market Strategist at Geojit Financial Services, said: “The successful close above the 24,550–24,608 band and the Marubozu pattern formed thereof signal confidence in the upmove. The rally is expected to test the 24,697–24,809 zone before any slowdown. Alternatively, a pullback below 24,550 could invite bearish pressure.”
(With inputs from ANI)