Indian equity benchmarks Sensex and Nifty 50 opened marginally higher on Friday, supported by gains in FMCG stocks, even as investor sentiment remained cautious due to steep tariffs imposed by the United States.
The Nifty 50 climbed 36 points, or 0.15%, to trade at 24,537, while the BSE Sensex gained 118 points, or 0.15%, reaching 80,199 in the early session.
The broader BSE Midcap and Smallcap indices traded largely flat, showing limited momentum across sectors. However, the FMCG index stood out, rising 1.59%, followed by private banks, which edged up by 0.43%.
The auto index was among the major laggards, falling 0.84%.
Among notable gainers in the Nifty pack were Kotak Mahindra Bank, Trent, HUL, Tata Steel, TCS, and Asian Paints. On the losing side were Shriram Finance, Apollo Hospitals, Titan Company, Larsen & Toubro, and ICICI Bank.
Despite the positive start, technical charts painted a cautious picture.
“Nifty has formed a strong bearish candle on the daily chart, indicating persistent selling pressure,” said Amruta Shinde, Analyst at Choice Equity Broking.
She added, “A decisive move above 24,700 could push the index towards 24,850 and even 25,000. Immediate support lies at 24,337, followed by the 200-day EMA at 24,260—levels that could trigger fresh long positions.”
Tariffs & Market Sentiment
Investor confidence has been tested by the 50% US tariff on Indian goods, which came into effect recently. Analysts, however, suggest the market views the move as temporary.
“The tariff shock, combined with India’s high valuations, has led FIIs to expand short positions. However, a swift resolution could reverse sentiment and trigger short covering,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He noted that domestic policy actions, including budget-led fiscal stimulus, rate cuts, and the upcoming GST rationalisation, are likely to revive growth and boost corporate earnings, creating a foundation for a more sustained market rally.
Overnight, US markets posted modest gains. The Dow Jones rose 0.16%, the Nasdaq advanced 0.53%, and the S&P 500 increased 0.32%.
In contrast, Asian markets opened on a mixed note. Japan’s Nikkei dipped 0.43%, while Hong Kong’s Hang Seng rose 0.76%. Shanghai remained flat with a 0.07% gain, and South Korea’s Kospi edged down 0.12%.
Economic data from Tokyo revealed a slower rise in core consumer prices in August and an easing unemployment rate, which helped temper regional concerns.
On the institutional front, foreign investors extended their selling streak for the fourth consecutive day, pulling out ₹3,856 crore. Meanwhile, domestic institutional investors (DIIs) continued to support the market, purchasing equities worth ₹6,920 crore.
As global uncertainties persist, the market awaits policy signals and earnings momentum to set a clear direction in the coming sessions.
Also Read: India’s Manufacturing Sector Posts 11.89% GVA Growth In FY24: ASI
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