Opening Bell : Benchmarks to make negative start tracking weak global cues
Indian equity markets are likely to make a negative start on Tuesday amid weak global cues, as concerns persist over tech valuations and the outlook for U.S. interest rates. However, traders are likely to take some support after Commerce Secretary Rajesh Agrawal stated that the first phase of the proposed India-US bilateral trade agreement (BTA) is nearing closure. Additionally, some optimism may come from foreign institutional investors (FIIs), who were net buyers of shares worth Rs 442.17 crore.
Some of the key factors to be watched:
India's exports drop 11.80% in October; trade deficit widens to $41.68 billion: India's exports contracted 11.80 per cent to $34.38 billion in October on account of the impact of high tariffs by the US, while the trade deficit widened to a record high of $41.68 billion, mainly due to a jump in gold imports.
India’s unemployment rate remains steady at 5.2$ in October: Government data showed that the rate of unemployment for those aged 15 and above remained steady at 5.2 per cent in October. The unemployment rate was 5.2 per cent in September, 5.1 per cent in August, 5.2 per cent in July and 5.6 per cent in May and June.
First phase of India-US trade deal nearing closure: Commerce Secretary Rajesh Agrawal said that the first phase of the proposed India-US bilateral trade agreement (BTA) is nearing closure and would address the hefty 50 per cent tariffs imposed by the Trump administration on Indian goods, in addition to resolving America's market access issues.
FTA negotiations with EU, New Zealand in last leg: Commerce Secretary Rajesh Agrawal said that India's free trade agreement (FTA) negotiations with the European Union (EU) and New Zealand are in the final stages and are expected to be concluded soon.
India to gain from US reciprocal tariff cuts on some Agri items: The commerce ministry said that India is expected to gain from the US decision to roll back reciprocal tariffs on certain agricultural products such as tea, coffee and spices.
On the global front: The US markets ended in red on Monday as valuation concerns weighed on investors’ sentiments ahead of the release of quarterly results from Nvidia. Asian markets trading in red on Tuesday, following the negative cues from Wall Street overnight.
Back home, Indian equity benchmarks maintained upward bias throughout the day and ended around half percent higher on Monday following an across-the-board rally and strong quarterly performance by corporates. Investors also cheered fresh support measures from the Reserve Bank of India for exporters hit by recent tariff disruptions. Finally, the BSE Sensex rose 388.17 points or 0.46% to 84,950.95 and the CNX Nifty was up by 103.40 points or 0.40% to 26,013.45.
Some of the important factors in trade:
India, Canada FTA talks resumption: Commerce and Industry Minister Piyush Goyal has said all possibilities are on the table regarding the resumption of free trade agreement (FTA) negotiations with Canada.
Venezuela interested in expanding economic engagement with India beyond oil sector: Ministry of Commerce & Industry in its latest notification has said that Venezuela has expressed interest in expanding economic engagement with India beyond the oil sector, including cooperation in critical minerals and attracting Indian investment.
Foreign fund outflows: Foreign institutional investors (FIIs) remained net sellers for the fifth day in a row and offloaded equities worth Rs 4,968.22 crore on Friday, according to exchange data.
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