Opening Bell : Benchmarks likely to get positive start amid strong cues from US markets
Indian equity benchmarks are likely to get a positive start on Tuesday even as US President Donald Trump signed an order on Monday imposing 25 per cent tariffs on steel and aluminium imports to the US. Investors continue to keep close eye on earnings with Vodafone Idea, Lupin, AstraZeneca Pharma, Birlasoft, and Berger Paints among several others to announce their Q3 results today.
Some of the key factors to be watched:
Growth momentum of India’s manufacturing sector continues: The Federation of Indian Chambers of Commerce and Industry (FICCI) survey noted that the Growth momentum of India’s manufacturing sector continues with 83 per cent of manufacturers reporting either higher or stable production levels, making this the second-highest index recorded in recent years.
RBI plans to purchase Rs 40,000 crore worth of government securities: The Reserve Bank of India (RBI) plans to purchase Rs 40,000 crore worth of government securities via open market operation auction on Thursday, against the earlier notified amount of Rs 20,000 crore.
India, EFTA nations launched dedicated desk: India and European Free Trade Association (EFTA) nations launched a dedicated desk to assist European businesses looking to invest or expand in India, aiming to catalyse a $100 billion foreign direct investment (FDI) commitment under the trade deal.
Trump announces 25% tariff: US President Donald Trump announced a 25 per cent tariff on all steel and aluminum imports, a move that could further reduce India’s already minimal shipments of these commodities to the US and expose the country to an influx of surplus supplies.
Gold prices continue record rally: Gold prices continued their record rally on Monday, breaking through the key $2,900 level for the first time, fueled by safe-haven demand amid escalating trade war and inflation concerns following US President Trump’s new tariff threats.
On the global front: The US markets ended higher on Monday lifted by Nvidia and other AI-related stocks, while steelmakers surged after U.S. President Donald Trump said he would impose additional tariffs on steel and aluminum imports. Asian markets are trading mostly in red on Tuesday after President Donald Trump imposed 25% tariffs on all US steel and aluminum imports, adding to uncertainty across global markets.
Back home, Indian equity benchmarks extended their losing streak for the fourth consecutive session on Monday as fresh concerns over US tariff policies weighed on investor sentiment. Finally, the BSE Sensex fell 548.39 points or 0.70% to 77,311.80, and the CNX Nifty was down by 178.35 points or 0.76% to 23,381.60.
Some of the important factors in trade:
Rising crude oil prices: Oil prices rose in Asian trading after three consecutive weekly declines despite U.S. President Donald Trump's new tariff announcement on all steel and aluminum imports.
Foreign fund outflows: Foreign institutional investors (FIIs) offloaded equities worth Rs 470.39 crore in the capital markets on a net basis on Friday, according to exchange data.
Income tax relief, repo rate cut to boost recovery in consumption in economy: Finance Minister Nirmala Sitharaman has said that income tax relief provided in the Union Budget coupled with RBI repo rate cut put together will boost recovery in consumption in the economy.
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