In afternoon trade, the benchmark indices staged a recovery from early losses, with both the Sensex and Nifty bouncing back into positive territory. As of 1:20 PM, the Sensex was up 151 points at 81,042.39, while the Nifty gained 56.25 points to trade at 24,737.15.
Indian equity indices opened Tuesday’s trading session on a lower note. The NSE Nifty 50 opened 35 points lower and breached 24,700, an important level. The BSE Sensex opened 100 points lower at 80,780.
Similarly, Bank Nifty opened 90 points or 0.16% lower at 55,995. In line with the benchmarks, the small and midcap stocks opened in the red. The Nifty Midcap fell 65 points to 57,455.
“There are more headwinds than tailwinds for the market now. The major issue weighing on markets is that the expected trade deal between India and the US has not happened so far and the probability of a deal before the August 1 deadline is becoming lower. President Trump’s success in reaching deals with Japan and the EU, which were advantageous for the US, may further make the US position harder to deal with India. It remains to be seen what transpires before the August 01 deadline,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
“Furthermore, there are threats of more tariffs on countries that trade with Russia if Russia doesn’t reach a deal with Ukraine on stopping the war. The threat of tariffs on pharmaceuticals is another concern,” added Vijayakumar.
“Technically speaking, the ongoing decline has the 24,400-24,500 support area in its sights as long as immediate resistance at 25000 is not challenged. The real test for bulls will be at 24,200, should prices get there. Asian cues were slightly weak this morning, while overnight US cues were strong with the S&P climbing to yet another record,” said Akshay Chinchalkar, Head of Research at Axis Securities.
Let’s take a look at the key factors to watch out for today’s trading session
Early gainers and laggards
In early trade, among the Nifty 50, top gainers at this hour were JSW Steel, IndusInd Bank, Jio Financial Services, Tata Consumer Products, and Nestle India, among other stocks. On the flip side, the key laggards in the Nifty 50 pack included Bharat Electronics, Zomato (Eternal), Infosys, SBI Life Insurance, and ICICI Bank.
Major movers on Tuesday
The stocks that remained under pressure included HDFC Bank, ICICI Bank, Infosys, Zoamto (Eternal), and Bharat Electronics, which were the major movers in the morning trade.