Domestic equity benchmark indices opened higher on Tuesday, brushing aside global uncertainty triggered by US President Donald Trump’s continued use of tariffs, including his latest threat to impose duties on countries trading with Iran.
Positive sentiment in Indian markets was also supported by recent comments from the US Ambassador, indicating progress in trade negotiations between India and the United States.
The Nifty 50 opened at 25,846.65, up 56.40 points or 0.22 per cent, while the BSE Sensex began the session at 84,122.92, gaining 244.75 points or 0.29 per cent.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said global markets will remain sensitive to geopolitical developments and the US President’s policy moves.
“Geopolitical developments and President Trump’s comments and actions will continue to influence markets. The weaponisation of tariffs has already affected global trade, particularly countries hit by penal duties. Trump’s latest declaration of imposing 25 per cent tariffs on countries trading with Iran sends a clear message that this approach will continue,” Vijayakumar said.
He added that the unpredictable nature of US trade policy is likely to weigh on global markets.
From an Indian perspective, Vijayakumar said the significance of a US-India trade agreement became clear when markets rebounded sharply after US Ambassador Sergio Gor said the US was determined to conclude a trade deal with India, with talks set to resume as early as January 13.
Broader markets also traded in the green, with the Nifty 100 rising 0.18 per cent, the Nifty Smallcap 100 up 0.64 per cent and the Nifty Midcap 100 gaining 0.38 per cent.
Most sectoral indices on the NSE were also positive. Nifty Media gained 0.88 per cent, Nifty Auto rose 0.15 per cent, Nifty FMCG was up 0.26 per cent, Nifty Metal advanced 0.43 per cent, Nifty PSU Bank climbed 0.65 per cent and Nifty Private Bank added 0.29 per cent.
Ponmudi R, CEO of Enrich Money, said Indian markets were likely to remain steady to mildly positive, extending the rebound seen in the previous session.
“Global cues remain supportive, with Asian markets trading higher and US indices closing firm overnight. However, volatility has increased due to tariff-related concerns and rising geopolitical tensions in the Middle East. Investors are also closely watching December-quarter earnings, especially in the IT sector after TCS and HCL Technologies reported mixed results,” he said.
On Monday, foreign institutional investors sold equities worth Rs 3,638.40 crore, while domestic institutional investors bought shares worth Rs 5,839.32 crore, according to market data. (ANI)
