Indian Markets Open Higher On US Trade Talks, Mixed Global Cues

Indian stock markets opened on a positive note on Tuesday as investors reacted to mixed global signals and the arrival of US Chief Negotiator Brendan Lynch in India to resume trade discussions between the two countries.

By 9:25 AM, the Sensex was trading 184 points higher, up 0.23 per cent at 81,970, while the Nifty rose 47 points or 0.19 per cent to 25,117.

Broader markets outperformed benchmarks, with the Nifty Midcap 100 climbing 0.26 per cent and the Nifty Smallcap 100 gaining 0.70 per cent.

On the NSE Nifty 50, Kotak Mahindra, Axis Bank, and Hero Motocorp led the gainers, while Titan Company, SBI Life Insurance, Asian Paints, and Tata Consumer Products exerted downward pressure.

Among sectoral indices, Nifty Media posted the largest gains, surging 1.08 per cent. Nifty Auto and Nifty Oil & Gas rose 0.65 per cent and 0.57 per cent, respectively, while Nifty FMCG and Nifty PSU Bank recorded minor losses.

Analysts noted that a sustained move above the 25,160 level could trigger further gains toward 25,250 and 25,500, with immediate support seen at 25,000 and 24,900.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, stated, “The bold reforms (both fiscal and monetary) implemented this year have started yielding results and are likely to gather momentum in the near future. An India-US trade agreement without the penal tariffs can be a shot in the arm for markets.”

Global Market Trends

Overnight in the US, major indices closed higher, with the Nasdaq up 0.94 per cent, the S&P 500 gaining 0.47 per cent, and the Dow rising 0.11 per cent.

Asian markets were largely positive in early trading. Japan’s Nikkei advanced 0.54 per cent, Hong Kong’s Hang Seng rose 0.07 per cent, and South Korea’s Kospi jumped 1.2 per cent. In contrast, China’s Shanghai index fell 0.1 per cent, and Shenzhen lost 0.26 per cent.

US markets are currently factoring in a 96.4 per cent probability of a 25-basis-point rate cut on September 17, with further reductions anticipated by year-end.

On Monday, foreign institutional investors (FIIs) sold equities worth Rs 1,268 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,933 crore.

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