Indian stock markets open marginally higher as banking and IT stocks gain ahead of tariff announcement

MUMBAI: The Indian stock markets opened marginally higher on Wednesday, witnessing gains in the banking and IT sector stocks, as the market participants are eagerly waiting the US tariff scheduled to be announcements on April 2.

At the opening of the trade today in the markets, the Sensex stayed at 76,136.09, up 111.58 points or 0.15 per cent while the Nifty was at 23,196.20 up 30.50 points or 0.13 per cent.

At National Stock Exchange (NSE), the stocks of Tata Consumer, Trent, Tech Mahindra, Zomato, ONGC emerged as the major gainers. HUL, HCL Technologies, Dr Reddy’s Labs, NTPC and Reliance Industries were the major losers at the NSE at the opening of the trade.

“Liberation Day will not liberate the markets from uncertainty , rollbacks , retaliations and the spectre of a full blown trade war . T- Day is not victory from uncertainty day”, said market expert Ajay Bagga, observing the market’s mood. He, however, added that the markets have drawn a line on how much the impact will be and are treading water in wait and watch mode.

“India will also get hit by 20% tariffs in the US tariffs and will then have to negotiate a part by part deal over the next few months. Damage done to Indian exporters already so more falls should be limited but we are not making that bet, instead we are conserving capital and waiting this one out”, he added.

Observing the markets, Akshay Chinchalkar, Head of Research, Axis Securities said, “Yesterday’s drop in the Nifty has delayed and weakened the tactical bull case that began at 21964, but is far from negating it. For the day, vital support lies in the 23090 – 23141 zone with a downside extension in the 22,800-22,900 zone, which represents a long-term bull/bear threshold of sorts. The 50-day moving average is starting to flatten near 23000, so that’s another major support level to watch. Bulls will be back in play only above 23,565”.

According to the experts, the market will stay under pressure as it awaits the details of the Trump tariff scheduled to be implemented from April 2. Experts stated that the Trump tariff announcement is a major event now which will be the main focus of the market participants.

However, the markets have discounted the impact, but the reality will seem worse initially and then improve as concessions and exclusions are announced. (ANI)