Opening Bell : Markets likely to make cautious start amid mixed global cues
Indian equity markets are likely to make cautious start on Tuesday amid mixed global cues. Traders are likely to adopt cautious approach ahead of release of India’s consumer price index (CPI) data for July. Additionally, selling by foreign portfolio investors (FPIs) could further dampen markets sentiments.
Some of the key factors to be watched:
Trump tariffs to impact 55% of total merchandise exports to US: Minister of State for Finance Ministry Pankaj Chaudhary said that about 55 percent of India's total merchandise exports to the US will be subject to 25 percent reciprocal tariff.
Focused efforts being made to mitigate adverse impact of US tariff: The private report said that the government has asserted that certain red lines cannot be crossed in the trade negotiations with the US and that it is making focused efforts as part of an export diversification strategy to mitigate the adverse impact of the high tariff imposed by the US.
Government focusing on 50 countries to boost exports: The government is working on measures to boost India's exports, including targeting 50 countries in regions such as the Middle East and Africa, amid the heavy tariffs imposed by the US on Indian goods.
Lok Sabha passes new Income Tax Bill: The new Income Tax Bill, passed by Lok Sabha, has retained the provisions regarding ITR filing for TDS claims and tax exemptions for anonymous donations made to all religious-cum-charitable trusts, as in the existing tax laws.
Kharif paddy sowing rises 12% to 365 lakh hectares: Government data shows Paddy sowing so far this kharif season is higher by 12 percent at 364.80 lakh hectares. Sowing of paddy, the main crop of kharif (summer-sown) season, stood at 325.36 lakh hectares in the same period last year.
On the global front: The U.S. markets ended in red on Monday, ahead of release of slew of economic data. Asian markets are trading mostly in green on Tuesday, as the United States and China agreed to extend their tariff truce for another 90 days.
Back home, Indian equity benchmarks saw a relief rally and ended around a percent higher on Monday following buying in Realty, Banking and Healthcare stocks amid fresh foreign fund inflows. A firm trend in Asian markets further contributed to the optimism in equities. Finally, the BSE Sensex rose 746.29 points or 0.93% to 80,604.08 and the CNX Nifty was up by 221.75 points or 0.91% to 24,585.05.
Some of the important factors in trade:
Foreign funds boost rally: Foreign institutional investors (FIIs) recorded their first net equity inflow of August on Friday, buying Rs 1,932.81 crore worth of Indian shares, according to exchange data. This marked a reversal after five straight sessions of selling, during which FIIs pulled out over Rs 16,000 crore.
India should not yield to pressure while negotiating trade deal with US: Former G20 Sherpa Amitabh Kant has said that India should never lose its strategic autonomy, never yield to pressure while negotiating trade deals with the US. He suggested that the country should look at a long-term perspective and behave in a calm and collected manner.
Defence stocks in watch: Amid sustained policy support, increased private participation, and expanding export capabilities, the annual defence production has soared to an all-time high of Rs 1,50,590 crore in the Financial Year (FY) 2024-25, representing a robust 18% growth over the previous fiscal's output of Rs 1.27 lakh crore, and a staggering 90% increase since FY 2019-20, when the figure was Rs 79,071 crore.
Above views are of the author and not of the website kindly read disclaimer
