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Market Update

Nifty : 23,668.65 +10.30 (+0.04%  Sensex : 78,017.19 +32.81 (+0.04%)

* Equity benchmarks Nifty and Sensex ended marginally higher but underperformed the broader market due to profit booking, driven by a stronger US dollar and ongoing concerns over the impact of US tariffs on the global economy. Tech stocks provided some support to the market. The Sensex closed at 78,017, up by 33 points or 0.04%, while the Nifty ended 10 points higher, or 0.1%, at 23,668. However, the overall market breadth was negative, with profit booking observed in sectors such as defense, rail, PSU banks, metals, FMCG, and pharma.

* The Nifty 500 stocks' advance-decline ratio stood at 1:4. Investors are keeping a close eye on the US-India trade deal discussions that began today. Reports suggest India is considering reducing tariffs on more than 50% of American imports worth $23 billion as part of an initial trade agreement between the two countries.

* Tech stocks saw renewed interest, fueled by strong performance in the global IT sector, with the Nasdaq Composite rising more than 2% yesterday. The Nifty IT Index gained 1%, with Infosys, Persistent Systems, Coforge, Mphasis, and HCL Tech increasing by 1-2%.

* Heg and Graphite India surged by 12% and 8%, respectively, following Japan's decision to impose a 95.2% anti-dumping duty on graphite electrode exports from China for four months as a provisional measure.

* Globally, US stocks surged on Monday as President Donald Trump hinted at scaling back some of his broader tariff plans, which could help avoid an economic slowdown caused by a prolonged trade war. Asian markets were mixed, with the Hong Kong Index dropping over 2% after Trump announced that the US would impose a 25% tariff on imports from any country purchasing oil from Venezuela, a move that could impact major importer China.

Technical Outlook:

* Nifty Index opened positive above 23750 zones and after touching a high of 23869, it faced a slight rub off from its opening levels. Minor profit booking was seen but it held above 23600 marks. After the dip in the first half of the session, it consolidated for the next half but gave up in the last hour to finally close in minor gains.

* It formed a bearish candle on the daily chart but has been making higher highs - higher lows from the last eight trading sessions. Index has recovered by 1900 points in the last four weeks and recouped the entire loss of the previous month. Now it has to hold above 23600 zones for an up move towards 23850 then 24000 zones while supports are shifting higher to 23500 then 23350 zones.

Derivative Outlook:

* Nifty future closed negative with losses of 0.14% at 23665 levels. Positive setup seen in Persistent System, Ultratech Cement, Coforge, Trent, Dmart, Bajaj FinServ, Grasim, Infy, Mphasis, Jubilant Food, Godrej CP, Axis Bank and Max Healthcare while weakness in Dixon, Titan, Zomato, IndusInd Bank, MCX, HFCL, National Aluminum, Hind Copper, JSW Energy, SJVN, Angel One and PEL.

* On option front, Maximum Call OI is at 24000 then 24100 strike while Maximum Put OI is at 23000 then 23500 strike. Call writing is seen at 24000 then 23800 strike while Put writing is seen at 23700 then 23800 strike. Option data suggests a broader trading range in between 23000 to 24000 zones while an immediate range between 23400 to 23800 levels.

* Kalpataru Project – Company secured orders worth Rs 2,366 crore for its Transmission & Distribution, Buildings & Factories business.

* External auditor PwC may submit report on IndusInd Bank's On Friday - PTI reported that External auditor PWC may submit report on IndusInd Bank's accounting discrepancies on Friday. According to estimates Rs 2,100 crore discrepancy in accounting may impact 2.35% of Bank's net worth. The report is expected to point out the actual loss to bank due to the accounting discrepancies.

* Engineers India won large order - Company has secured two orders worth a total of 7.30 billion Indian rupees from undisclosed clients in the Middle East, according to a Tuesday filing to the Indian stock exchanges.

* NBCC- Company has secured new orders worth Rs658cr for the Rodi Belwala area revitalization, Sati Kund and surrounding development, Har ki Pauri and Subhash Ghar revitalization, and redevelopment of parking and commercial area at upper road opposite the railway station in Haridwar.

* KPI Green Energy – Company receives letter of award for development of 13.80 MW solar power project under CPP Business segment.

* Bansal Wire – Company got approved the application made by the Company under PLI Scheme 1.1 for Specialty Stee notified by Ministry of Steel, Government of India SBI.

* Raises $1 Billion in India’s Largest Bank Loan of 2025 – Company raised $1 billion in the largest dollar-denominated syndicated loan this year from the nation, giving a boost to the lagging foreign-currency debt market.

* S&P cuts India's FY26 GDP growth forecast to 6.5% from 6.7% - S&P Global Ratings cut India's GDP growth projections to 6.5 per cent from 6.7% for the next fiscal as it expects that economies in the APAC region will feel the strain of rising US tariffs and pushback on globalisation.

Global Market Update

* European Market - European stocks rose on Tuesday, ending three straight sessions of losses as investors focused on the \potential for a global trade war ahead of a US tariff deadline next week. UK, France and Germany’s DAX rose 0.5% each.

* Asian Market - Shares were mixed in Asia on Tuesday, Chinese shares led losses in Asia, with regional markets struggling to build on gains spurred by President Donald Trump’s recent tariff comments. Trump administration may take a more targeted approach as it tees up a new round of tariffs on imported goods next week. Hong Kong Index slipped 2.2% while Japan Index gained 0.6%.

* US Data - New Home sales, Consumer Confidence and Building Permit.

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