Will the Stock Market Continue to Rise Ahead of India-US Trade Deal?
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Synopsis
As optimism grows regarding a potential trade agreement between India and the US, the Indian stock market shows positive momentum. With key indices trending upward, market analysts are closely monitoring tariff implications that could influence investor sentiment. This article explores the latest developments and market reactions.
Key Takeaways
- Sensex and Nifty show upward trends.
- Analysts predict market volatility based on tariff details.
- Key support levels identified for investors.
- Foreign and domestic institutional investments are strong.
- Asian markets show mixed results.
Mumbai, July 8 (NationPress) The domestic benchmark indices showed slight gains on Tuesday morning following an announcement from US President Donald Trump that “we are close to a deal with India.”
By 9:30 am, the Sensex rose by 91.57 points, or 0.11 percent, reaching 83,534.07, while the Nifty climbed 22.25 points, or 0.09 percent, to hit 25,483.55.
Increased buying activity was noted in the IT, PSU bank, and financial service sectors. Analysts suggest that the announcement of unilateral tariffs on 14 nations, with India excluded, signals an impending trade agreement between India and the US.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, commented, “The market has largely priced this in; however, the specifics regarding potential sectoral tariffs, particularly on pharmaceuticals, remain uncertain. Market reactions will hinge on these details.”
In the previous trading session, the Nifty concluded slightly higher, producing a bullish candlestick formation following a previous hammer pattern, as observed by experts.
“A consistent movement above the 25,500 threshold could lead to further upward momentum towards 25,750. On the downside, immediate support levels are identified at 25,222 and 25,120, which may be considered entry points for long positions,” stated Mandar Bhojane, Technical Analyst at Choice Broking.
The Nifty Bank index rose by 203 points, or 0.36 percent, to 57,152.20 in early trading.
The Nifty Midcap 100 index was at 59,606.75, gaining 91 points or 0.15 percent. The Nifty Smallcap 100 index reached 19,035.85 after increasing 85.70 points, or 0.45 percent.
In the Sensex pack, top gainers included Kotak Mahindra Bank, Eternal, Tata Motors, BEL, Adani Ports, NTPC, Asian Paints, and UltraTech Cement. Conversely, Titan, HCL Tech, Bharti Airtel, M&M, and Sun Pharma were the leading losers.
On the institutional front, foreign institutional investors (FIIs) acquired equities worth Rs 321.16 crore on July 7, while domestic institutional investors (DIIs) purchased equities totaling Rs 1,853.39 crore on the same day.
In Asian markets, Seoul, Hong Kong, Japan, China, and Jakarta were all trading in positive territory, with only Bangkok showing losses.
During the last trading session, the Dow Jones in the US closed at 44,406.36, down 422.17 points, or 0.94 percent. The S&P 500 ended down 49.37 points, or 0.79 percent, at 6,229.98, and the Nasdaq closed at 20,412.52, down 188.59 points, or 0.92 percent.
Point of View
It is crucial to approach market changes with a balanced perspective. The recent news of a potential India-US trade deal is promising, yet investors should remain cautious. Understanding market dynamics and being prepared for fluctuations will be vital for navigating this evolving landscape. NationPress stands with our readers to provide transparent and authoritative insights.
NationPress
01/09/2025
Frequently Asked Questions
What impact will the India-US trade deal have on the stock market?
The anticipated trade deal may boost investor confidence, leading to a positive market sentiment and potential gains in various sectors.
Which sectors are currently performing well in the Indian stock market?
Sectors such as IT, PSU banks, and financial services are currently witnessing significant buying activity.
What are the immediate support levels for the Nifty?
Immediate support levels for the Nifty are identified at 25,222 and 25,120.
