India's Benchmark Indices Trade With Modest Gains, Investors Awaiting Clarity on U.S. Tariffs

About 1,319 stocks are advancing against 1,359 declining stocks, thus indicating a neutral sentiment in the broader market.

Market Update at 10:25 AM: India's benchmark indices started Wednesday on a positive note. The BSE Sensex hovered around 77,980, while the NSE Nifty 50 remained steady at 23,671, following seven consecutive sessions of gains. Investors stayed cautious, awaiting further clarity on upcoming U.S. tariffs.

On the sectoral front, 13 out of 17 sectors recorded gains, with Metal and Energy stocks rising 0.5 per cent. 

In the last seven sessions, the two benchmarks added 5.7 per cent, turning positive for year-to-date, as foreign capital inflows and hopes of improved domestic macroeconomic factors drove bargain buying.

Broader markets saw modest gains, with Small-Cap and Mid-Cap indices increasing around 0.4 per cent and 0.1 per cent, respectively.

In today’s trade, India VIX is trading around the 13.5 mark, down by 1 per cent, indicating a decrease in market volatility.

U.S. President Donald Trump has warned of imposing reciprocal tariffs on all nations starting April 2. However, on Monday, the administration stated that not all tariffs would take effect on that date. Additionally, there is uncertainty regarding which countries and sectors might receive exemptions.

About 1,319 stocks are advancing against 1,359 declining stocks, thus indicating a neutral sentiment in the broader market.

Pre-Market Update at 7:30 AM: Indian equity benchmark indices, Sensex and Nifty 50, are likely to have a positive opening on Wednesday, taking cues from a global market. Asian markets traded in the green, while Wall Street showed modest gains, with the S&P 500 closing at its highest level in more than two weeks.

Gift Nifty hovered around the 23,750 mark, reflecting a premium of approximately 80 points over the previous close of Nifty futures. This suggests a potential positive opening for Indian stock market indices.

U.S. stock futures saw a slight uptick as markets aimed to extend Monday’s rally, even as investors weighed the impact of President Donald Trump’s recent tariff threats. The S&P 500 rose 0.2 per cent, the Dow Jones Industrial Average added 0.1 per cent, and the Nasdaq Composite climbed 0.2 per cent.

U.S. President Donald Trump's policy of reciprocal tariffs is adding to market uncertainty. Although he might ease some of the broader tariffs initially set for India, new concerns have arisen. One such threat is a proposed 25 per cent "secondary tariff" on nations like India and China that import oil from Venezuela.

Asian markets opened with modest gains on Wednesday as investors assessed the impact of weaker U.S. consumer confidence and a late rebound in Wall Street. Stocks in Sydney and Tokyo inched higher, while Hong Kong futures indicated slight gains. The S&P 500 added 0.2 per cent on Tuesday, extending its longest winning streak in nearly seven weeks, despite fluctuating throughout the session amid a dip in consumer confidence.

Brent crude slipped 0.07 per cent to USD 73.32 per barrel following a 0.27 per cent rise last week, while US WTI crude futures edged up 0.48 per cent to USD 69.19.

The dollar index, which measures the U.S. currency against a group of major peers, eased by 0.1 per cent to 103.85 after earlier touching a three-week peak of 104.46. Its recent strength was driven by expectations of new tariffs, while USD/INR was trading at 85.60.

On Tuesday, the Indian stock market navigated a highly volatile session and managed to close with modest gains, marking its seventh consecutive day of advances. The Sensex inched up by 32.81 points (0.04 per cent) to settle at 78,017.19, while the Nifty 50 edged higher by 10.30 points (0.04 per cent) to end at 23,668.65.

On March 25, 2025, foreign institutional investors (FII) bought shares worth Rs 5,371.57 crore, while domestic institutional investors (DII) sold shares worth Rs 2,768.87 crore.

Stocks that are banned for trading in the F&O segment on March 26, 2025, is Indusind Bank Ltd only.

Disclaimer: The article is for informational purposes only and not investment advice.