The Indian stock market is set to experience a positive opening on Tuesday, buoyed by a strong performance in global markets. Investors are optimistic following the United States’ decision to exempt smartphones and computers from new tariffs, which has sparked a rally across various sectors. As the Sensex and Nifty 50 gear up for trading, the momentum from international indices is likely to influence local sentiment.
Global Market Influence on Indian Indices
Recent trends suggest that the Asian markets are on an upward trajectory, propelled by a significant rally in Wall Street’s tech sector. On Tuesday, Japan’s Nikkei 225 saw an increase of 1.15%, while the Topix index rose by 1.16%. South Korea’s Kospi also made gains of 0.39%, although the Kosdaq experienced a slight decline of 0.32%.
- Gift Nifty is currently trading around 23,305, indicating a potential gap-up opening for Indian benchmarks, with a premium of nearly 387 points compared to the previous close.
Impact of Tariff Exemptions
The US stock market concluded its trading session on a high note, with tech stocks leading the charge after the announcement of tariff exemptions. The Dow Jones Industrial Average climbed by 312.08 points (0.78%), reaching 40,524.79. The S&P 500 and Nasdaq Composite also posted gains of 0.79% and 0.64%, respectively.
- Notable stock movements included a 2.2% rise in Apple, a 4% increase in Dell Technologies, and a 2.5% gain for HP. However, Nvidia and Amazon saw minor declines of 0.2% and 1.49%.
Outlook for Indian Markets
Investors are breathing a sigh of relief following US President Donald Trump’s announcement of a 90-day halt on certain tariffs, which has generated positive sentiment and short covering. However, market analysts like Prashanth Tapse from Mehta Equities Ltd. caution against potential intra-day volatility due to ongoing tensions, particularly with China’s recent imposition of 125% tariffs on US imports.
Economic Insights
The decision to exempt electronics from tariffs is expected to ease import costs, especially for semiconductors from Taiwan and Apple iPhones manufactured in India. As noted by Raphael Bostic, President of the Atlanta Federal Reserve Bank, the uncertainty surrounding tariff policies has led to a slowdown in investment activities across households and businesses.
Commodities Overview
In the realm of commodities, gold prices are showing an upward trend amid ongoing concerns about the economic impact of tariffs. Spot gold has increased by 0.1%, trading at $3,211.49 per ounce, while US gold futures have also risen by 0.1% to $3,227.90.
- Crude oil prices are on the rise as well, supported by the recent tariff exemptions and a rebound in Chinese crude oil imports. Brent crude futures increased by 0.42%, reaching $65.15 per barrel, while West Texas Intermediate saw a similar rise to $61.79.
In summary, as the Indian stock market prepares to open, all eyes will be on the influence of global trends and tariff decisions that could shape investor sentiment in the days to come.
