At 9:30 am, the BSE Sensex up 56 points, or 0.07%, at 83,499, while the Nifty50 rose 17 points, or 0.07%, to 25,478.
On Monday, President Trump announced that higher U.S. tariffs will take effect from August 1, marking a new phase in the trade war launched earlier this year. He imposed a 25% levy on key Asian allies, including Japan and South Korea, while stating that the U.S. was close to finalising a trade deal with India.
The proposed tariffs are expected to push up prices and slow economic growth. However, the greater concern for businesses may be the uncertainty around final policy outcomes, which is causing many to delay key decisions.
Wall Street slid, with the S&P 500 Index logging its biggest drop in three weeks. Asian markets were mixed on the day, with MSCI’s broadest index for Asia-Pacific stocks outside Japan down 0.1%.
In April, President Trump capped all reciprocal tariffs with trading partners at 10% until July 9 to allow time for negotiations. So far, only two deals—one with Britain and another with Vietnam—have been finalised.Meanwhile, in the Sensex pack, Kotak Mahindra Bank, Eternal, Tata Motors, BEL, NTPC, and Adani Ports were among the top gainers, rising up to 4.2%. On the other hand, Titan, HCLTech, M&M, and Bharti Airtel opened in the red.Kotak Mahindra Bank gained over 4% after the bank reported a 14% year-on-year rise in net advances as of June 30, while average total deposits increased by 12.9%.
Titan Company shares slid nearly 5% despite reporting a 19% YoY increase in domestic sales for the first quarter, driven by higher gold prices—surpassing the 9.3% growth recorded in the same period last year.
On the sectoral front, Nifty Bank rose 0.35%, while Metal gained 0.25%. Nifty IT, FMCG, and Oil & Gas also opened in positive territory. In the broader market, the Nifty Smallcap100 surged 0.4%, and the Nifty Midcap100 added 0.1%.
Experts View
“The announcement of unilateral tariffs on 14 countries and the exclusion of India from the list, along with President Trump’s remark that “we are close to a deal with India,” indicate that a trade deal between India and the US will be announced soon. This has already been largely discounted by the market; the unknown areas are the details of possible sectoral tariffs on segments like pharmaceuticals. Market reaction will depend on these details,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
“The market is unlikely to break the 25200- 25500 range soon. Resilience within this range is strong. In the coming days, market reaction will be stock-specific in response to the Q1 results,” Vijayakumar added.
Devarsh Vakil, Head of Prime Research at HDFC Securities, said, “The short-term trend of the Nifty remains positive, as it is positioned above its important moving averages. Immediate support for the Nifty is now seen at 25,331, while resistance is expected to stay in the range of 25,600-25,670, as the market awaits clarity on the evolving global trade landscape.”
Global Markets
Stock markets in Asia took in stride the latest twist in U.S. President Donald Trump’s tariff roll-out on Tuesday, as the dollar held onto gains and oil retreated.
Shares on Wall Street fell after Trump sent letters to 14 countries, including Japan and South Korea, unveiling sharply higher tariffs on imports into the United States, while also postponing their implementation to August 1.
Japan’s Nikkei stock gauge opened lower but then turned positive after Trump described that deadline as “firm, but not 100% firm” and said tariffs may be adjusted for some countries.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2% in early trade. Japan’s Nikkei stock index rose 0.4% while South Korea’s KOSPI jumped 1.5%.
FII/DII Tracker
On the institutional front, Foreign Institutional Investors (FIIs) continued their selling streak for the fourth consecutive session, offloading equities worth Rs 1,481 crore on July 3. Meanwhile, Domestic Institutional Investors (DIIs) remained net buyers, purchasing equities worth Rs 1,333 crore during the same period.
Crude Oil
Oil prices eased on Tuesday after rising almost 2% in the previous session, as investors assessed new developments on U.S. tariffs and a higher-than-expected OPEC+ output hike for August.
Brent crude futures dropped 21 cents at $69.37 a barrel by 0041 GMT. U.S. West Texas Intermediate crude fell 24 cents at $67.69 a barrel.
Rupee vs Dollar
The Indian rupee rose 23 paise to 85.71 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.18% to 97.3 level.
(With inputs from agencies)
