Indian markets open in green, volatility will remain till US-India trade deal decisions: Experts

MUMBAI: The Indian stock markets opened with gains on Thursday, but caution prevailed as investors remained concerned about the looming US tariff deadline. The Nifty 50 index began the day at 25,505.10, rising by 51.70 points, or 0.20 per cent. Similarly, the BSE Sensex opened at 83,540.74, marking a marginal gain of 131.05 points, or 0.16 per cent.

Market experts noted that while domestic factors are supporting the market, global volatility, especially uncertainties around the US-India trade deal, is keeping traders on edge. Ajay Bagga, banking and market expert, said, “Indian markets are under the global volatility haze and waiting for a signal on a US-India trade deal. Domestic factors are favouring markets to scale back above all-time highs in the next few weeks.”

Bagga further highlighted the impact of recent developments in US trade policy. He said, “Trump’s announcement of a trade deal with Vietnam, which involves 20 per cent tariffs on Vietnamese goods exports and 40 per cent tariffs on trans-shipped goods transiting through Vietnam enroute to the US, and offers 0 per cent full market access to US goods to the Vietnam markets, enthused markets. We are in the last 5 days of the US tariff deadline of July 8th night. Most trade deals have stalled on hardening positions on both sides. Next week expect volatility as the deadline looms. We expect a postponement of the reciprocal tariffs or the levying of a universal tariff of 10 per cent to 20 per cent”.

On the National Stock Exchange (NSE), broader market indices also opened with gains. The Nifty 100 rose by 0.2 per cent, the Nifty Midcap 100 surged by 0.17 per cent, and the Nifty Smallcap 100 increased by 0.19 per cent. Among the sectoral indices, Nifty IT showed the strongest performance with a 0.69 per cent gain. Nifty Auto rose by 0.66 per cent, Nifty Metal was up by 0.45 per cent, and Nifty FMCG also gained by 0.27 per cent in the opening session.

Akshay Chinchalkar, Head of Research at Axis Securities, provided a technical view on the markets. He said, “The Nifty fell yesterday in what is now a three-day retreat. Technically speaking, we are only consolidating the bullish rectangle breakout and as long as the 25,200-25,270 area is protected, bulls are merely taking a breather. Under 25,200, we risk 25,000. On the upside, the recent swing high at 25,670 is where the bullish trigger lies. With the deadline for the tariff pause expiring next week, it will be interesting to see if the current optimism globally holds up. Today is weekly derivatives expiry, so higher than usual volatility may be seen.”

Asian markets showed a mixed trend. Japan’s Nikkei 225 index was flat and in the red at the time of reporting. Hong Kong’s Hang Seng index declined by 0.88 per cent, and Singapore’s Straits Times index was down by 0.11 per cent. On the positive side, Taiwan’s Taiwan Weighted index jumped by 0.9 per cent, while South Korea’s KOSPI rose by 0.95 per cent.

Overall, Indian markets opened on a positive note, but investors are keeping a close watch on the approaching tariff deadline and global trade developments, which may determine the next move for the markets. (ANI)