Indian equity benchmarks are expected to open higher on Tuesday, potentially extending their recent positive momentum, buoyed by supportive global developments and sustained confidence from foreign investors.
Strong earnings from index heavyweight Reliance Industries are also anticipated to provide a positive underpinning for the market at the start of the session.
Early indicators signal a continuation of the recent upward trend.
Gift Nifty futures were trading around 24,484.5 as of 7:16 am, suggesting the Nifty 50 index is likely to begin the day above Monday’s closing level of 24,328.5.
This follows positive cues from other Asian markets which opened higher, reflecting a generally improved sentiment across the region.
Easing trade tensions bolster global mood
A key factor contributing to the positive global backdrop is the apparent easing of trade-related anxieties.
Comments from US officials have helped soothe investor nerves.
Treasury Secretary Scott Bessent remarked on Monday that many key trading partners had made “very good” proposals regarding tariffs and specifically mentioned that a trade agreement with India could potentially be signed within the next week or two.
Additionally, US Commerce Secretary Howard Lutnick indicated that President Donald Trump would move to lessen the impact of auto tariffs, further dialing down fears of a damaging, full-blown trade war.
This shift in tone has reduced demand for traditional safe-haven assets, leading to a decline in gold prices early Tuesday.
Domestic drivers: FPI flows and policy support
Domestically, continued strong buying from foreign portfolio investors (FPIs) remains a significant pillar of support.
According to provisional NSE data, FPIs extended their net buying streak to nine consecutive sessions as of Monday – their longest run of daily net purchases since early July 2023.
This sustained inflow indicates growing foreign investor confidence in the Indian market.
VLA Ambala, Co-Founder of Stock Market Today, noted the impact of currency dynamics: “A drop in the dollar’s value is benefiting the Indian market and helping attract new investments.”
She also highlighted domestic policy measures contributing to stability: “Also, India’s steps like anti-dumping measures for steel products and incentives for electronics products are boosting overall market sentiment and stability.”
Growth is anticipated across key core sectors like coal, crude oil, electricity, and steel, she added.
From a technical standpoint, market watchers are identifying key levels. VLA Ambala suggested India Today the potential support for the Nifty 50 between “24,160 and 24,000,” with resistance likely near “24,500 and 24,680” in the upcoming session.
For the Bank Nifty, she projected support between “55,000 and 53,800” and resistance near “56,000 and 56,350.”
Stocks in the spotlight
Specific stocks are expected to be in focus following recent developments:
- Reliance Industries: Likely to see positive interest after posting better-than-expected Q4 profits, driven by strength in its retail and digital divisions.
- TVS Motor Company: May see gains after reporting stronger-than-anticipated Q4 profits on Monday, benefiting from robust two-wheeler demand and export growth.
- Shriram Finance: Identified by VLA Ambala as a potential investment opportunity.
As Dalal Street prepares for Tuesday’s session, the combination of positive global cues, strong domestic inflows, and specific corporate catalysts appears set to support further upward momentum, though traders will remain watchful of technical levels and ongoing news flow.
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