Indian equity indices are trading Thursday’s session on a lower note after the US tariffs on Indian imports came into effect from August 27. The NSE Nifty 50 have experienced a significant deceleration, falling 0.42% to 24,600. The BSE Sensex is trading 400 points lower at 80,400.
Similarly, Bank Nifty opened 144 points or 0.26% lower at 54,307. In line with the benchmarks, the small and midcap stocks opened the day lower. The Nifty Midcap fell 38 points to 56,728.
“The 50% tariff imposed on India, which has already come into effect, will weigh on market sentiments in the near-term. But the market is unlikely to panic since the market will view these high tariffs as a short-term aberration that will be resolved soon. U.S. Treasury Secretary Scott Bessant’s comment that “at the end of the day, India and the U.S. will come together” indicates the likely outcome. The market will discount this outcome without panicking,” said Vinod Nair, Head of Research at Geojit Investments.
“The real challenge before the market is the high valuations and the tepid earnings growth. The strong pillar of support to the market is the aggressive buying by DIIs flush with funds. Any selling by FIIs will be easily neutralised by the aggressive buying by DIIs,” added Nair.
On the technical front, Amruta Shinde, who is a Technical & Derivative Analyst with Choice Broking, said that given the prevailing uncertainty and heightened volatility, traders are advised to adopt a cautious ‘wait-and-watch’ approach, particularly in leveraged positions. Booking partial profits on rallies and deploying tight trailing stop-losses remain prudent strategies to manage risk. Fresh long positions should only be considered if the Nifty sustains above the 24,850 level.
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 Hero MotoCorp, Asian Paints, Eicher Motors, Eternal (Zomato), and Hindustan Unilever. On the flip side, the key laggards in the Nifty 50 pack included HCL Technologies, Shriram Finance, HDFC Bank, Jio Financial Services, and Infosys.
Major movers on Thursday
The stocks that remained under pressure included HDFC Bank, ICICI Bank, Reliance Industries, Infosys, and HCL Technologies, which were the major movers in the morning trade.