The Indian stock market opened on a positive note on Tuesday, though investors remained cautious as negotiations on the India-US trade deal continued to progress.
The Nifty 50 index opened at 25,277.55, gaining 50.20 points or 0.20 per cent, while the BSE Sensex began the day at 82,404.54, up 77.49 points or 0.09 per cent.
Experts noted that while the overall sentiment has improved due to positive developments in the ongoing trade discussions between India and the United States, uncertainty over tariff-related outcomes continues to weigh on investor confidence.
Banking and market expert Ajay Bagga told ANI, “Indian markets were tepid on Monday, with Friday’s US impact being absorbed by fresh domestic buying. Futures are pointing to a flat open for the Indian markets. The Indian Commerce Ministry announced that trade talks with the US are progressing well, but the markets are not willing to factor this in until the actual deal is concluded, given the Trump strategy of chaos and unpredictability.”
Bagga added that recent peace announcements in the Middle East are a positive sign for global geopolitics. He also noted that with Ukraine’s leader scheduled to meet President Trump in the US on Friday, expectations of additional weapons and aid for Ukraine are high.
On the commodities front, oil, gold, and silver prices have surged. Gold climbed to a new lifetime high of USD 4,149 per ounce, while silver prices are witnessing a sharp rise amid a physical shortage in the market, forcing global exchanges to scramble to meet delivery demands.
Meanwhile, global market sentiment improved slightly after US President Donald Trump adopted a more conciliatory tone towards China. US Secretary of State Bessent confirmed that the Trump-Xi meeting, scheduled for the end of the month, will take place as planned. Following this, US markets recovered more than half of their losses from Friday.
In the cryptocurrency market, recovery continues after the forced liquidation of over USD 19 billion in leveraged positions on Friday, which wiped out nearly 1.6 million accounts.
Bagga suggested that the “whale” who had taken a large position before the Trump-China 100 per cent tariff announcement has once again built up a significant short position as of Monday.
On the domestic front, several major companies are set to announce their second-quarter earnings today, including Tech Mahindra, ICICI Lombard General Insurance Company, ICICI Prudential Life Insurance Company, Persistent Systems, Bank of Maharashtra, Indian Renewable Energy Development Agency, Leela Palaces Hotels & Resorts, Thyrocare Technologies, Cyient DLM, Navkar Corporation, Automobile Corporation of Goa (ACGL), GTPL Hathway, and Aditya Birla Money.
Additionally, LG Electronics India, a manufacturer and distributor of home appliances and consumer electronics (excluding mobile phones), will make its stock market debut on Tuesday.
Among other Asian markets, Japan’s Nikkei 225 declined 1.29 per cent, Singapore’s Straits Times fell 0.4 per cent, and Hong Kong’s Hang Seng index dropped 0.45 per cent. However, South Korea’s KOSPI gained 0.57 per cent, and Taiwan’s weighted index rose 0.92 per cent.
Despite lingering global uncertainties, analysts believe that the improving trajectory of India-US trade talks and strong domestic fundamentals could help sustain market resilience in the near term.
(ANI)