Sensex and Nifty Trim Gains Ahead of US-India Trade Talks

Market Update at 10:22 AM: Indian benchmark indices, the BSE Sensex and NSE Nifty, were off their early highs on Monday as investors awaited clarity on the upcoming US-India trade talks.

Earlier in the day, US Ambassador to India, Sergio Gor, stated that both nations would engage in trade discussions today, keeping market sentiment watchful.

The BSE Sensex, which had advanced nearly 270 points in morning trade, slipped into the red to quote at 83,688, down 190 points or 0.23 per cent. Similarly, the Nifty50 tested the 25,900 mark in early deals but erased gains to hover at 25,747, lower by 43 points or 0.17 per cent.

On the gaining side, Eternal, Tech Mahindra, SBI, BEL, HDFC Bank, Maruti Suzuki, Hindustan Unilever, Titan Company, ICICI Bank, ITC, and Axis Bank rose up to 3 per cent. In contrast, L&T, Reliance Industries, Tata Steel, Mahindra & Mahindra, Trent, TCS, IndiGo, Bharti Airtel, and Sun Pharma traded in negative territory.

In the broader markets, performance remained mixed as the Nifty MidCap index slipped 0.17 per cent while the Nifty SmallCap index edged higher by 0.39 per cent.

Sectorally, the Nifty PSU Bank index led with a gain of 0.88 per cent, followed by the Nifty FMCG, IT, and Metal indices which edged up 0.3 per cent each. On the downside, the Nifty Pharma index declined 0.25 per cent.

Pre-Market Update at 7:57 AM: Indian equity benchmarks recovered sharply from Monday’s lows to end in the green, supported by improved sentiment ahead of the first leg of the earnings season. Analysts expect overall trade to remain largely sideways with stock-specific action dominating the session.

GIFT Nifty (earlier SGX Nifty) on the NSE IX traded higher by 58 points, or 0.22 per cent, at 25,917, indicating a positive start for Dalal Street on Tuesday. However, the late buying seen in Monday’s session is unlikely to change the broader sentiment. The Nifty is expected to face firm resistance in the 26,000–26,100 zone, where selling pressure may reappear, while immediate and crucial support lies at 25,650. Meanwhile, India VIX, the volatility gauge, rose 4 per cent to settle at 11.37, reflecting slight risk aversion.

Global cues were mixed. US equities ended higher overnight with the Dow and S&P 500 closing at record highs, driven by gains in technology names and Walmart. Investors mostly shrugged off concerns surrounding the U.S. Justice Department’s criminal investigation of Federal Reserve Chair Jerome Powell. The Dow gained 0.2 per cent, the S&P 500 added 0.2 per cent, and the Nasdaq jumped 0.3 per cent.

Asian equities opened firm on Tuesday, buoyed by optimism around earnings and regional economic momentum. As of 9:21 a.m. Tokyo time, S&P 500 futures edged 0.1 per cent lower, Japan’s Topix surged 2.1 per cent, Australia’s S&P/ASX 200 advanced 0.8 per cent, and Euro Stoxx 50 futures rose 0.3 per cent.

On the currency front, the US dollar weakened after the Trump administration launched a criminal investigation against Fed Chair Powell, raising questions about central bank independence and confidence in U.S. assets. The Indian rupee recovered marginally and settled 1 paisa higher at Rs 90.16 against the USD on Monday, supported by a weaker American currency and lower crude oil prices.

In the derivatives segment, SAIL and Sammaan Capital remain under the F&O ban for Tuesday, as both securities crossed 95 per cent of the market-wide position limit. Foreign portfolio investors net sold equities worth Rs 3,638 crore on Monday, while domestic institutional investors were net buyers with inflows of Rs 5,839 crore.

Disclaimer: The article is for informational purposes only and not investment advice.