After four straight sessions of gains, Indian equities may face a pause today amid weak global signals. Investors are watching with caution as the US has imposed fresh tariffs on over 400 products, while Asian markets opened in the red.
The US announced a 50 percent tariff on more than 400 products, including items made of steel and aluminium as well as automobile and consumer product components. In addition, Washington scrapped the exemption that allowed duty-free shipment of goods valued below $800, a move seen as negative for exporters. Both measures are expected to weigh on sentiment.
Meanwhile, US technology stocks, which had surged over 40 percent in the past four months, are now being flagged as overheated. Analysts warn that the AI-driven rally may be turning into a bubble.
Gift Nifty closed at 25,010.50 on Tuesday night but slipped to 24,960 in early trade, signalling a lower start for domestic equities.
European equities rose on hopes of progress in Ukraine peace talks. France’s CAC gained 1.21 percent, though defence stocks slipped.
In the US, optimism over Ukraine did little to lift equities as tech stocks dragged major indices lower. Nvidia dropped 3.5 percent, AMD 5.4 percent, Broadcom 3.6 percent and Palantir 9 percent. The Nasdaq Composite has now risen more than 40 percent from its April low, prompting concerns of an eventual correction.
Intel shares jumped 7 percent after reports of a $20 billion investment by Japan’s SoftBank, with additional backing expected from the US government.
On Wall Street, the Dow Jones inched up 10.45 points (0.02 percent) to close at 44,922.27, but the S&P 500 lost 37.78 points (0.59 percent) to 6,411.37, while the Nasdaq Composite fell 344.82 points (1.46 percent) to 21,314.95. US futures were also trading lower this morning.
Asia opened weak, with Japan’s Nikkei down 1.5 percent after July exports fell 2.6 percent. South Korean indices also lost 1.5 percent, while Chinese and Hong Kong markets slipped as the People’s Bank of China left rates unchanged.
Indian equities extended their winning streak on Tuesday, though the Nifty 50 failed to hold above the 25,000 mark. The Sensex gained 370.64 points (0.46 percent) to close at 81,644.39, while the Nifty 50 ended 103.70 points (0.42 percent) higher at 24,980.65.
Mid-cap and small-cap indices rose nearly 1 percent each. Reliance Industries led the rally, climbing 2.84 percent to ₹1,421 after S&P indicated a possible ratings upgrade. FMCG, auto and oil & gas stocks also supported the market.
Textile firms surged after the US delayed tariff hikes on cotton imports until September 30. Vardhman, Welspun, Trident, Gokaldas, Arvind and Raymond posted sharp gains. Kitex Garments rose 5 percent, extending its one-week rally to over 12 percent.
Delta Corp jumped 12 percent intraday after the government introduced an online gaming regulation bill, before closing 7.77 percent higher. Tata Motors rose for the fifth day in a row, up 8 percent over the period, on restructuring plans to split its commercial and passenger vehicle businesses.
Fertilizer and auto stocks gained after China agreed to resume exports of rare earths and urea to India.
However, Kalyan Jewellers fell further, extending its year-to-date decline to 34 percent.
Defence stocks were in focus after the Cabinet Committee approved the purchase of 97 Tejas fighter jets worth ₹62,000 crore.
Gold fell $17 to $3,316.10 an ounce on easing Ukraine worries. In Kerala, gold prices dropped ₹380 per sovereign to ₹73,880. Silver traded at $37.31 an ounce.
Industrial metals weakened, with aluminium down 0.78 percent at $2,567.44 a tonne and copper slipping to $9,621.40. Rubber, cocoa and coffee prices also fell, while tea remained steady.
Brent crude dropped 1.22 percent to $65.79 a barrel on Tuesday before edging up to $66.01 in early trade today. WTI stood at $62.72, while Murban crude was at $68.82. Natural gas slipped 0.55 percent.
In currencies, the dollar index rose to 98.27 overnight and 98.35 this morning. The euro weakened to $1.1644, the pound to $1.3486 and the yen to 147.68 per dollar.
The rupee strengthened sharply, closing at 86.96 per dollar, up 39 paise, on expectations that India may be exempted from fresh US tariffs.
Nifty faces resistance at 25,010 and 25,095, while support is seen at 24,820–24,900. Analysts caution that only a close above 25,000 will confirm further upside momentum.
Cryptocurrency:
Bitcoin fell below $113,000.
Ether dropped below $4,120.
Indian markets (August 19 close):
Sensex: 81,644.39 (+0.46 percent)
Nifty 50: 24,980.65 (+0.42 percent)
Bank Nifty: 55,865.15 (+0.23 percent)
BSE Midcap 100: 57,664.65 (+0.97 percent)
BSE Smallcap 100: 17,914.30 (+0.70 percent)
Global markets:
Dow Jones: 44,922.27 (+0.02 percent)
S&P 500: 6,411.37 (−0.59 percent)
Nasdaq Composite: 21,314.95 (−1.46 percent)
Currencies & commodities:
Dollar: ₹86.96 (−₹0.39)
Gold (ounce): $3,316.10 (−$17.00)
Gold (per sovereign in Kerala): ₹73,880 (−₹320)
Brent crude oil: $65.79 (−$0.81)