Indian Stock Market Rises as US Tariff Concerns Diminish

Synopsis

On January 22, the Indian stock market opened positively, recovering from a significant drop caused by uncertainties related to US trade tariffs. The Sensex surged, while sector performances varied. Market analysts provide insights on support and resistance levels amidst ongoing sell-offs by foreign investors.

Key Takeaways

Indian stock indices opened positively on January 22.
Sensex rose to 76,209, with Nifty 50 also up.
Market breadth favored sellers; 1,738 stocks advanced.
Trump's tariff threats impacted market sentiments.
Foreign investors continued their selling trend.

Mumbai, Jan 22 (NationPress) The Indian benchmark indices began trading on a positive note on Wednesday, recovering from a significant drop triggered by uncertainties surrounding US President Donald Trump's trade tariffs.

In the early session, the 30-stock Sensex climbed to 76,209, showing an increase of nearly 370 points (around 9:42 a.m.), while the Nifty 50 was up by 95 points at 23,120.

Of the 12 sectors on the NSE, six experienced declines, with Nifty FMCG and Nifty Pharma seeing the most gains. Conversely, Nifty Realty and Metal sectors fell significantly.

The market breadth was tilted towards sellers, with 1,738 stocks advancing and 112 stocks remaining unchanged on the BSE.

Market analysts indicated that after this positive start, the Nifty could find support at 22,950, followed by 22,800 and 22,600. On the upside, 23,100 could serve as immediate resistance, followed by 23,250 and 23,400.

Experts noted, 'President Trump’s orders and statements have been disruptive. His tough rhetoric suggests that stricter measures may be forthcoming.'

Trump's warning to impose 100 percent tariffs on BRICS nations if they attempt dedollarisation echoes his campaign rhetoric, which the markets seem to have taken seriously.

According to Akshay Chinchalkar, Head of Research at Axis Securities, the bearish flag that was confirmed yesterday has a near-term target of 22,830, and the 14-day momentum remains above oversold, indicating that we are not at any downside extreme yet.

In the US, all three major indexes saw gains of at least 0.6 percent, with the Dow Jones Industrial Average leading the way at 1.2 percent (up more than 500 points) on Tuesday (US time) following Trump’s return to the Oval Office.

In India, foreign institutional investors (FIIs) continued their selling streak for the 13th consecutive day, offloading equities worth Rs 5,920 crore on January 21. Conversely, domestic institutional investors acquired equities worth Rs 3,500 crore on the same day.