Mumbai: Indian benchmark indices traded almost flat on Tuesday morning, tracking gains in Asia, after Donald Trump took over as the 47th US President and did not immediately impose trade tariffs as widely expected.
The Nifty 50 was up 0.25 per cent while the 30-stock BSE Sensex was higher by 0.09 per cent, as of 9:18 a.m. At pre-open, the S&P BSE Sensex Index was up 188 points, or 0.24 per cent, at 77,261 while the NSE Nifty 50 was 76 points or 0.33 per cent higher at 23,421.
According to market watchers, Trump 2.0 has kicked off without much clarity on his likely economic decisions.
In his inaugural address he was clear on immigration but sounded vague on tariffs. The indication of a likely 25 per cent tariffs on Canada and Mexico suggests that the tariff hike policy will be implemented gradually.
The currency market has reacted with a cut in the dollar index to 108.43 and the 10-year bond yield has declined to 4.54 per cent.
“This is the classic case of ‘buy on rumours and sell on news.’ It is likely that further delays in tariff hikes will weaken the dollar and bring down the bond yields. If this happens, it will be good for emerging markets like India,” said experts.
Seven out of the 12 sectors on the NSE advanced, with Nifty IT and Nifty Pharma rising the most on Tuesday. Nifty Realty and PSU Bank fell the most in early trade.
The broader markets traded alongside the larger peers, with the BSE midcap climbing by 0.21 per cent and the smallcap rising by 0.51 per cent.
Seven out of the 20 sectors compiled by BSE declined, with Consumer durables and realty falling the most.
“After a positive opening, Nifty can find support at 23,250 followed by 23,100 and 23,000. On the higher side, 23,400 can be an immediate resistance, followed by 23,500 and 23,700,” said experts.
The foreign institutional investors (FIIs) sold equities worth Rs 4,336 crore on January 20, while domestic institutional investors bought equities worth Rs 4,322 crore on the same day.
(IANS)
