The Aryavarth Express
Mumbai (Maharashtra):
Indian equity benchmark indices opened higher on Tuesday, shrugging off global uncertainty triggered by US President Donald Trump’s continued use of tariffs, including a fresh threat to impose duties on countries trading with Iran.
Positive sentiment in domestic markets was supported by recent remarks from the US Ambassador, indicating progress in trade talks between India and the United States.
The Nifty 50 opened at 25,846.65, gaining 56.40 points or 0.22 per cent, while the BSE Sensex began the session at 84,122.92, up by 244.75 points or 0.29 per cent.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said global markets would remain sensitive to geopolitical developments and President Trump’s policy actions.
“Geopolitical developments and President Trump’s comments and actions will continue to influence markets. The weaponisation of tariffs has already impacted global trade, especially countries targeted with penal duties. The latest declaration of imposing 25 per cent tariffs on countries trading with Iran signals that this approach will continue,” he said.
He added that the unprecedented and unpredictable nature of US policy could weigh on markets. However, from an Indian perspective, the importance of a US–India trade agreement was underscored by the sharp market rebound after US Ambassador Sergio Gor stated that Washington is determined to finalise a trade deal with India, with talks expected to resume as early as January 13.
Broader markets also traded positively, with the Nifty 100 rising 0.18 per cent, the Nifty Smallcap 100 gaining 0.64 per cent, and the Nifty Midcap 100 advancing 0.38 per cent.
Sectoral indices on the NSE were largely in the green. Nifty Media rose 0.88 per cent, Nifty Auto gained 0.15 per cent, Nifty FMCG advanced 0.26 per cent, Nifty Metal climbed 0.43 per cent, Nifty PSU Bank increased 0.65 per cent, and Nifty Private Bank added 0.29 per cent.
Ponmudi R, CEO of Enrich Money, said Indian markets were expected to remain steady to mildly positive, extending Monday’s sharp rebound from intraday lows. He noted that global cues were supportive, with Asian markets trading higher and US indices closing firm overnight. However, he cautioned that volatility had increased due to renewed tariff concerns and rising geopolitical tensions in the Middle East. He also highlighted that investor focus has shifted to December-quarter earnings, particularly in the IT sector, following mixed results from TCS and HCL Technologies.
On the institutional front, foreign institutional investors (FIIs) sold equities worth Rs 3,638.40 crore on Monday, while domestic institutional investors (DIIs) bought shares worth Rs 5,839.32 crore.
