Stock Market Trades Higher Ahead Of India-US Trade Deal

The domestic equity markets traded higher in early Tuesday sessions amid growing hopes of a soon-to-be-finalised trade deal between India and the United States.

The announcement from US President Donald Trump, indicating that ‘we are close to a deal with India’, lifted investor sentiment and encouraged buying across key sectors.

By 9:30 AM, the Sensex was up 91.57 points or 0.11 per cent, standing at 83,534.07, while the Nifty gained 22.25 points or 0.09 per cent to reach 25,483.55.

Buying interest was predominantly observed in the IT, PSU banking, and financial services sectors.

Analysts suggest the exclusion of India from the recent unilateral tariffs announced by the US on 14 countries points towards an imminent trade agreement.

Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, commented, “The market has largely factored in the possibility of a trade deal. However, the details concerning sectoral tariffs, particularly on pharmaceuticals, remain uncertain. The market’s future trajectory will depend heavily on these specifics.”

Technical outlook

The Nifty closed marginally higher in the previous session, forming a green candlestick following a bullish hammer pattern.

Mandar Bhojane, Technical Analyst at Choice Broking, noted, “A sustained move above the 25,500 mark could trigger a rally towards 25,750. On the downside, supports at 25,222 and 25,120 may provide entry points for long positions.”

In early trade, Nifty Bank gained 203 points or 0.36 per cent to 57,152.20, while the Nifty Midcap 100 index rose 91 points or 0.15 per cent to 59,606.75.

The Nifty Smallcap 100 index added 85.70 points or 0.45 per cent, closing at 19,035.85.

Among Sensex constituents, Kotak Mahindra Bank, Eternal, Tata Motors, Bharat Electronics Limited (BEL), Adani Ports, NTPC, Asian Paints, and UltraTech Cement were the day’s top gainers.

Meanwhile, Titan, HCL Technologies, Bharti Airtel, Mahindra & Mahindra (M&M), and Sun Pharma saw declines.

On the institutional front, foreign institutional investors (FIIs) net purchased equities worth Rs 321.16 crore on July 7.

Domestic institutional investors (DIIs) also remained net buyers, acquiring shares worth Rs 1,853.39 crore on the same day.

Across Asia, markets in Seoul, Hong Kong, Japan, China, and Jakarta were trading positively, while Bangkok lagged in the red.

In the US, the Dow Jones Industrial Average closed at 44,406.36, down 422.17 points or 0.94 per cent.

The S&P 500 lost 49.37 points or 0.79 per cent, settling at 6,229.98, and the Nasdaq fell 188.59 points or 0.92 per cent, finishing at 20,412.52.

This cautious optimism in Indian markets reflects hopes for stronger bilateral trade relations with the US, which could open new avenues for economic growth and investor confidence in the coming months.

Also Read: Indian Stock Market Opens Slightly Lower Amid Mixed Global Signals