Equity markets opened higher on Wednesday, tracking positive global cues after U.S. President Donald Trump’s indication of lower-than-expected tariffs on Chinese imports and renewed focus on AI investments boosted technology stocks worldwide.
The Sensex opened higher at 76,114.42 compared to its previous close of 75,838.36 and is currently trading at 76,057.57, up by 219.21 points or 0.29 per cent. Meanwhile, the Nifty opened at 23,099.15 against its previous close of 23,024.65 and is now at 23,072.40, gaining 47.75 points or 0.21 per cent.
“Trump’s threat to impose a 10 per cent tariff on Chinese imports, significantly lower than the anticipated 30-40 per cent, has provided some relief to the markets,” said Vikas Jain, Head of Research at Reliance Securities. “However, concerns over continued FII selling and weak quarterly results continue to weigh on sentiment.”
In the commodities market, gold held near an 11-week high at $2,745, supported by geopolitical uncertainties and a weaker dollar. “Gold and silver rose amid ongoing uncertainty over US President Donald Trump’s tariff plans,” said Rahul Kalantri, VP Commodities at Mehta Equities.
Crude oil prices showed volatility after Trump’s inauguration speech emphasized increased oil production, with prices falling below $76 per barrel. The President’s plans to boost oil and gas production and exports, along with the repeal of previous drilling restrictions, have pressured prices.
Technical analysts remain cautious about the market’s near-term outlook. “Given the severity of the sell-off, the ongoing weakness is likely to persist,” said Sameet Chavan, Head Research at Angel One, identifying immediate support at 22,900 and resistance at 23,200.
Looking ahead, market participants await quarterly results from heavyweight companies including HDFC Bank, HUL, and BPCL, which could influence market direction. The upcoming Federal Reserve meeting, Union Budget, and Delhi elections are also expected to keep volatility elevated in the near term.
Source: www.thehindubusinessline.com