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Mumbai, January 13:
Indian equity markets opened higher on Tuesday despite global uncertainty caused by fresh tariff threats from the United States, including possible duties on countries trading with Iran.
Positive domestic sentiment emerged after recent comments from the US Ambassador signaled progress on a potential India-US trade agreement. As a result, benchmark indices started the session in the green.
The Nifty 50 opened at 25,846.65, gaining 56.40 points or 0.22 percent. Meanwhile, the BSE Sensex rose 244.75 points or 0.29 percent to open at 84,122.92.
Global Trade Tensions Continue to Influence Markets
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said global markets remain sensitive to geopolitical developments and US President Donald Trump’s trade policies.
He stated that the continued use of tariffs as a policy tool has already affected global trade flows. Moreover, Trump’s latest announcement of a 25 percent tariff on countries trading with Iran signals ongoing uncertainty for global markets.
According to Vijayakumar, such unpredictable policy actions could weigh on investor sentiment in the near term.
India-US Trade Talks Boost Market Confidence
From an Indian market perspective, optimism grew after the US Ambassador indicated that Washington is determined to finalize a trade agreement with India. He added that talks could resume as early as January 13.
Consequently, markets witnessed a sharp rebound, highlighting the importance of a stable India-US trade relationship.
Broader Markets and Sectoral Performance
Broader market indices also showed strength in early trade. The Nifty 100 rose 0.18 percent, while the Nifty Smallcap 100 gained 0.64 percent. The Nifty Midcap 100 advanced 0.38 percent.
Sectoral indices on the NSE mostly traded higher. Nifty Media led the gains with a rise of 0.88 percent. Additionally, Nifty PSU Bank climbed 0.65 percent, while Nifty Metal increased 0.43 percent. Auto, FMCG, and Private Bank indices also posted modest gains.
Earnings and Global Cues in Focus
Ponmudi R, CEO of Enrich Money, said Indian markets are likely to remain steady to mildly positive. He noted that supportive Asian markets and firm overnight US closes aided sentiment.
However, he cautioned that volatility remains elevated due to tariff concerns and geopolitical tensions in the Middle East. Investor focus has also shifted to December-quarter earnings, especially in the IT sector, following mixed results from TCS and HCL Technologies.
Institutional Activity
On Monday, foreign institutional investors (FIIs) sold equities worth ₹3,638.40 crore. In contrast, domestic institutional investors (DIIs) bought shares worth ₹5,839.32 crore, providing support to the markets.
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