Is the Indian Stock Market Rallying as US Tariff Deadline Approaches?

Mumbai, June 26 (NationPress) The domestic benchmark indices started the day on a positive note on Thursday, buoyed by mixed signals from global markets. Early trading saw a surge in buying from the metal, automobile, and financial services sectors.

As of 9:26 am, the Sensex had risen by 239.27 points or 0.29 percent, reaching 82,994.78, while the Nifty gained 84.20 points or 0.33 percent, climbing to 25,328.95.

Analysts suggest that with the recent ceasefire between Israel and Iran, global markets are adopting a risk-on approach. However, the unresolved issue of reciprocal tariffs poses challenges for a sustained rally.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted, "The market's near-term focus will hinge on developments around July 9th, when the 90-day pause on reciprocal tariffs concludes. Observers will be keenly watching which countries manage to negotiate bilateral trade agreements with the US." He added that positive news regarding a potential India-US deal could provide a significant boost to the market.

In early trading, the Nifty Bank index rose by 41.50 points or 0.07 percent, reaching 56,662.65. The Nifty Midcap 100 index was at 58,993.20 after an increase of 111.50 points or 0.19 percent. Meanwhile, the Nifty Smallcap 100 index climbed 57.20 points or 0.31 percent, bringing it to 18,785.05.

Experts noted that the price action indicated an inside day, suggesting a likelihood of a significant trending move on the horizon.

"Immediate resistance is identified in the 25,310-25,360 range and higher at 25,500. Support is found between 24,960 and 25,010. Should prices dip below this, the bulls must protect the 24,800 level if they aim for a visit to the 25,500-25,800 area," stated Akshay Chinchalkar, Head of Research at Axis Securities.

Within the Sensex pack, major gainers included BEL, Eternal, Tata Motors, PowerGrid, Maruti Suzuki, Tata Steel, L&T, Bajaj Finserv, Bharti Airtel, and Titan. Conversely, top losers were Tech Mahindra, Kotak Mahindra Bank, Trent, and ICICI Bank.

On June 25, foreign institutional investors (FIIs) were net sellers, offloading equities worth Rs 2,427.74 crore. In contrast, domestic institutional investors (DIIs) were net buyers, purchasing equities valued at Rs 2,372.96 crore.

Among Asian markets, Japan, China, Bangkok, and Jakarta were performing well, while Seoul and Hong Kong faced declines.

In the previous trading session, the Dow Jones in the US closed at 42,982.43, down 106.59 points or 0.25 percent. The S&P 500 finished with a slight loss of 0.02 at 6,092.16, while the Nasdaq ended at 19,973.55, gaining 61.02 points or 0.31 percent.