New Delhi [India], February 5 (ANI): The Indian stock market opened on a positive note on Wednesday, with both benchmark indices trading in the green as Trump tariff threat seen as a negotiating tools.
The Nifty 50 index began the session at 23,801.75, gaining 62.50 points (0.26 per cent), while the Sensex surged 120.79 points (0.15 per cent) to open at 78,704.60. Positive cues from select sectors and investor optimism helped lift the market at the opening bell.
Market experts highlighted concerns over global economic uncertainty, particularly regarding U.S. trade policies. Analysts noted that businesses and governments are closely studying the impact of Donald Trump’s first presidency to assess the risks of a potential trade war.
Ajay Bagga Banking and Market Expert told ANI “US tariffs on China came into force on Tuesday. China has had a muted response. China is being restrained because it “has more to lose,” due to its huge trade imbalance with the US”.
He further added “We might be seeing two giants, sizing each up and testing each other’s resolve, while also playing to their domestic audiences, before shaking hands, so both portray an eventual deal as a “victory”.
However, many believe that a full-scale tariff conflict is unlikely, as Trump did not fully execute his earlier threats of additional duties on trading partners.
Experts described the current situation as an extreme case of Game Theory, where investors and policymakers are making decisions based on assumptions about each other’s limits and non-negotiables. Such uncertainty often leads to increased market volatility.
Despite global concerns, Indian sectoral indices opened on a strong note, with all major sectors showing gains.
The Nifty Oil & Gas index led the rally with a 0.74 per cent increase, while Nifty Bank and Nifty IT followed with 0.5 per cent gains each. Among the Nifty 50 stocks, 35 companies were trading higher, while 10 stocks were in the red at the time of reporting.
“Technically speaking, the index now sits at the falling trendline drawn from the record high and passing through the mid-December peak. Yesterday’s low did not overlap the Monday high and therefore, created a bullish rising window, making 23381 a key pivot that bulls will have to protect. Against this level, expect a test of the 23918 – 24060 area anytime within the next one week. That said, a close below 23381 will weaken this near-term bull case” said Akshay Chinchalkar, Head of Research, Axis Securities.
Investors are also keeping an eye on the quarterly earnings reports of several companies scheduled for today. Some of the key companies announcing their third-quarter financial results include Info Edge India, Swiggy, Zydus Lifesciences, Solar Industries India, Cummins India, Abbott India, Page Industries, GE Vernova T&D India, and Gujarat Gas.
Meanwhile, the broader Asian markets showed a mixed trend. The Nikkei 225 index and Hong Kong’s Hang Seng Index were trading in the red due to increased selling pressure. However, markets in Taiwan and South Korea’s Kospi index witnessed gains at the time of reporting. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
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