Domestic equity markets experienced a slight increase in early trading on Tuesday, boosted by hopes of a possible trade deal between India and the US. Investor mood was lifted after US President Donald Trump indicated that the two countries are close to an agreement.
By 9:30 a.m., the BSE Sensex had risen 91.57 points, or 0.11%, to 83,534.07, and the NSE Nifty rose 22.25 points, or 0.09%, to 25,483.55.
The largest gains were seen in information technology, PSU banking, and financial services sectors. The analysts opine that the recent imposition of tariffs on 14 nations by the US—except India—has reinforced hopes of an imminent bilateral trade agreement.
The market had already factored in the possibility of a deal. Yet, segregation of sector-specific tariffs, especially in sectors such as pharma, will decide the next market direction," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
During Monday's trade, the Nifty showed a marginal rise, printing a green candle that followed a bullish hammer pattern, reflecting continued strength.
A consistent rally above the 25,500 level may lead to a strong rally towards 25,750 levels. On the downside, the nearest support comes at 25,222 and 25,120, which may provide good entry points," said Mandar Bhojane, Technical Analyst at Choice Broking.
The Nifty Bank index also strengthened, advancing 203 points or 0.36% to 57,152.20 in the initial trading. The Nifty Midcap 100 index moved up to 59,606.75, a gain of 91 points or 0.15%, while the Nifty Smallcap 100 index was up 85.70 points or 0.45% at 19,035.85.
The standout performers of the Sensex were Kotak Mahindra Bank, Eternal, Tata Motors, BEL, Adani Ports, NTPC, Asian Paints, and UltraTech Cement. Conversely, Titan, HCL Technologies, Bharti Airtel, Mahindra & Mahindra, and Sun Pharma topped the losses.
Institutional activity was also firm. Foreign institutional investors (FIIs) were net buyers on July 7, buying equities totaling ₹321.16 crore. Domestic institutional investors (DIIs) also contributed to the upbeats, buying equities to the tune of ₹1,853.39 crore.
Asian markets also trailed the positive trend, with indices in Seoul, Hong Kong, Tokyo, Shanghai, and Jakarta trading in the green color. Bangkok was the only exception, with a dip.
That said, Wall Street experienced a softer session last night. The Dow Jones Industrial Average fell 422.17 points, or 0.94%, to close at 44,406.36. The S&P 500 declined 49.37 points (0.79%) to close at 6,229.98, while the Nasdaq Composite declined 188.59 points (0.92%) to close at 20,412.52.
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