Key Highlights
- Benchmark indices opened lower as IT stocks fell ~1% on lack of fresh market triggers.
- Early losses driven by global trade uncertainty and Middle East tensions quickly reversed; markets turned positive.
Benchmark stock market indices opened lower on Thursday, led by a drop in IT stocks due to a lack of new triggers. The indices, however, bounced back swiftly from their initial losses and are currently up.
The NSE Nifty50 increased 31.45 points to 25,163.80, while the S&P BSE Sensex increased 89.24 points to 82,604.38.
Since there aren't any obvious positive catalysts that could push the market much higher, Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, thinks the market's recent flattish trend will probably continue in the near future.
Also Read: Donald Trump Claims India Offered a Trade Deal with 'No Tariffs'
"There have been reports of a possible agreement between the United States and China. However, the Chinese have not officially confirmed anything. President Trump is discussing a 55% tariff on China and a 10% tariff on the United States. "Given President Trump's credibility, it would be premature to dismiss this as positive for markets," he added.
In addition, President Trump has stated that he will send letters to trade partners outlining universal tariffs within the next two weeks. Market participants will wait and watch for clarity on this. The tariff crisis has not yet ended.
Brent crude has risen to $70 due to increased security risks in the Middle East, which is bad news for India. Paints, adhesives, tyres, and aviation are likely to respond negatively, while ONGC and Oil India may respond positively.
