Indian equities opened on a subdued note on Wednesday, with investor sentiment tempered by cautious anticipation of a possible interim trade pact between India and the European Union, as well as continuing ambiguity around proposed US tariffs.
The Nifty 50 opened marginally lower at 25,514.60, down 7.90 points or 0.03 per cent, while the BSE Sensex dipped 92.69 points or 0.11 per cent to 83,619.82 in early trade.
While there was no sharp movement, analysts indicated the markets are locked in a wait-and-watch phase. The near-term direction, they suggested, hinges on developments surrounding trade agreements and tariff announcements.
“More announcements, including a potential mini deal with India and the EU are expected over the next two days, and this will keep the markets in a range-bound zone. Overall, markets are resilient and are seeing these as still intermediate inputs on the path towards a final tariff regime that will take more time,”
said Ajay Bagga, Banking and Market Expert.
He further observed that domestic equities have priced in a 10 per cent universal tariff as a baseline. “Anything higher than this will be mildly disappointing, but over the last 90 days, markets have factored in 25 per cent scenarios as well,” Bagga noted.
The global picture remains mixed. US President Donald Trump’s announcement of proposed 50 per cent tariffs on copper sent prices soaring 17 per cent on the US CME exchange, while London prices fell 2.4 per cent, triggering volatility in global commodity markets.
Technical indicators point to a market still clinging to bullish patterns, though analysts are wary of a potential breakdown.
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“The Nifty ended higher yesterday after a late-session recovery. Technically speaking, the close was above the upper line of a so-called 'bullish flag,' which portends a target of 26,267, near the record high,” said Akshay Chinchalkar, Head of Research at Axis Securities.
“However, the market must close above yesterday's high of 25,548 today and hold flag support at 25,331. Failure to do so will invalidate the flag and delay upside momentum, possibly leading to a test of the 25,200 level,” he added.
On the corporate front, earnings results from smaller firms are expected to draw limited market attention. Companies scheduled to announce Q1 numbers today include Supreme Infrastructure India, Sellwin Traders, Atishay, Bodhtree Consulting, Jattashankar Industries, Gujarat Hotels, and GACM Technologies.
Overseas, US indices closed mixed—the Dow Jones slipped 0.4 per cent, S&P 500 eased 0.1 per cent, while the Nasdaq edged up 0.03 per cent. European indices saw muted gains between 0.1 and 0.4 per cent. Dow futures traded nearly unchanged, down 10 points or 0.02 per cent.
Asian markets followed a similar tone of cautious consolidation. Japan’s Nikkei 225 was flat, Singapore’s Straits Times rose 0.22 per cent, Taiwan’s Weighted Index gained 0.18 per cent, South Korea’s KOSPI climbed 0.43 per cent, while Hong Kong’s Hang Seng fell 0.83 per cent.
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