Opening Bell : Markets likely to make positive start; CPI, WPI data eyed
Indian markets are likely to make a positive start on Tuesday, tracking a rally in global markets. Investors will be keeping close eye on upcoming corporate Q4 earnings reports, which could further impact market direction. Stocks in the IT sector will be in focus after the Trump administration announced a pause on tariffs for phones, computers, and consumer electronics. Market participants will be eyeing CPI and WPI data to be out later in the day.
Some of the key factors to be watched:
US tariff impact on India's GDP just 0.1%: Industry body PHDCCI said that the reciprocal tariffs imposed by US President Donald Trump will impact only 0.1 per cent of the Indian GDP, exuding confidence in price competitiveness and continued government support.
India's domestic demand showing recovery signs: Crisil report said that India's domestic demand is showing recovery signs, fueled by healthy rabi output and easing inflation expected in fiscal 2025's fourth quarter. Improved industrial production, particularly in manufacturing, infrastructure, and construction goods, signals increased capital expenditure.
US tariffs on low value Chinese e-commerce shipments opens doors for Indian exporters: GTRI in a report said the US crackdown on low-value Chinese e-commerce shipments has opened a rare and potentially lucrative window for Indian exporters.
Industrial output growth slows 2.9% in February: India's industrial production growth decelerated to a six-month low of 2.9 per cent in February 2025, mainly due to poor performance of the manufacturing, mining and power sectors.
Indian banks post market cap declines in Q4FY25: S&P Global Market Intelligence data and analysis said that Seven of the 12 biggest Indian banks that reported a decline in their market cap in the January-March 2025 quarter were state-owned.
On the global front: The US markets ended in green on Monday after U.S. Customs and Border Protection guidance issued late Friday revealed certain tech products will be excluded from President Donald Trump's reciprocal tariffs. Asian markets are trading mostly in green on Tuesday following firm cues from Wall Street overnight.
Back home, Indian equity benchmarks ended on a strong note, buoyed by positive global cues. The day saw widespread buying across sectors, with Metal and Basic Materials stocks leading the gains. Finally, the BSE Sensex rose 1310.11 points or 1.77% to 75,157.26, and the CNX Nifty was up by 429.40 points or 1.92% to 22,828.55.
Some of the important factors in trade:
India, Russia strengthening bilateral investment ties with six new strategic projects: Strengthening economic ties, India and Russia have agreed on six new strategic projects aimed at enhancing bilateral investment cooperation during the eighth Session of the India-Russia Working Group on Priority Investment Projects.
US pauses additional 26% tariff on India for 90 days: The White House executive orders noted that the US has suspended the additional tariffs on India for 90 days until July 9, 2025. This suspension of tariffs is not applicable to China, including Hong Kong and Macau.
Services firms expect improvement in business situation, turnover in Q1 FY26: The RBI’s survey has stated that services firms expect improvement in overall business situation and turnover in Q1:2025-26. The job landscape is also expected to expand but cost pressures are likely to increase in Q1:2025-26.
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