Sensex, Nifty open in green with marginal gains

MUMBAI: Indian stock markets opened on a positive note on Tuesday, continuing their upward trend. Both benchmark indices posted early gains, although investor sentiment remains cautious as markets await clarity on major global developments, particularly the Trump administration’s proposed tax cuts bill in the US.

The Nifty 50 index opened at 25,551.35, registering a gain of 34.30 points or 0.13 per cent. The BSE Sensex rose by 79.20 points or 0.09 per cent to open at 83,685.66. Despite the early gains, the overall market tone remains watchful.

Ajay Bagga, banking and market expert, said, “Asian markets are sideways, waiting for clarity on the Trump Tax cuts bill, trade deals and the US Jobs report. Indian markets saw FPIs selling on Monday and are expected to be sideways in a consolidating phase, waiting for global clarity”.

One of the key global factors affecting market sentiment is the significant fall in the US dollar. The dollar index, which measures the greenback’s strength against a basket of six major currencies including the pound, euro, and yen, has dropped more than 10 per cent in the first half of 2025.

This marks the worst start to a year for the US dollar since 1973, when it had fallen 15 per cent following the collapse of the Bretton Woods system. It is also the weakest six-month performance since 2009.

Bagga added, “The One Big Beautiful Bill of tax cuts and deregulation of Trump 2.0 is at present being debated in the US Senate. It is expected to be passed before July 4th, though it may need to be sent back to the House of Representatives to endorse the Senate’s changes. That and the June US Non Farm Payrolls report this week will be the two market-moving catalysts, along with the expected announcement of trade deals with some major trading partners”.

In broader market indices on the NSE, Nifty 100 gained 0.09 per cent, Nifty Midcap 100 rose by 0.27 per cent, while Nifty Smallcap 100 surged 0.37 per cent. Among sectoral indices, a mixed trend was observed. Nifty FMCG rose 0.10 per cent, Nifty Media gained 0.16 per cent, and Nifty Realty advanced by 0.77 per cent. On the downside, Nifty Auto slipped 0.04 per cent, Nifty Metal dropped 0.23 per cent, and Nifty PSU Bank was down by 0.20 per cent.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, commented, “A bearish candle on the daily chart indicates temporary weakness. We believe 25,450/83,500 would act as a crucial level. Below 25,450/83,500, we may see a further correction towards 25,375-25,300/83,200-83,000. On the other hand, a sustained move above 25,450/83,500 may take the market to 25,600/83,900. The uptrend may continue further, potentially taking the market towards 25,670/84,100”.

As global cues remain uncertain, the experts noted that Indian markets are likely to trade in a range-bound manner, with investors closely tracking developments in the US Senate and key economic data releases. (ANI)