Indian equity benchmarks opened cautiously higher on Tuesday, reflecting the nervous sentiment across global markets as investors weighed geopolitical tensions and fiscal uncertainties, particularly in the United States.
The Nifty 50 index opened at 24,786.30, up 69.70 points or 0.28%, while the BSE Sensex began at 81,492.50, gaining 118.75 points or 0.15% in early trade.
Market experts attributed the subdued opening to a mix of international factors—including rising tariff tensions, fiscal policy concerns in the US, and renewed geopolitical instability, especially from the Russia-Ukraine conflict.
“Fiscal worries, geopolitical tensions, and tariff uncertainty are the defining trends for global markets,” said market expert Ajay Bagga, adding that although the US markets edged up on Monday, the broader environment remains volatile. He noted that a weaker dollar, rising oil prices, and sluggish manufacturing PMIs in the US and Europe further complicate investor sentiment.
Bagga also highlighted concerns over former US President Donald Trump’s push for a new tax bill, which could deepen America’s fiscal deficit. “Markets and senators are nervous about the long-term implications,” he said.
Despite the macroeconomic jitters, broader indices in India saw modest gains:
- Nifty Next 50 rose by 0.28%
- Nifty Financial Services climbed 0.22%
- Nifty Midcap and Small Cap indices both increased by 0.4%, suggesting sustained interest in mid and small-cap segments
All major sectoral indices opened positively, indicating broad-based buying:
- Nifty Realty led gains, up 0.7%
- Nifty Pharma rose 0.56%
- Nifty IT and Nifty Auto gained 0.37% and 0.3%, respectively
- Nifty Metal was up 0.22%
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, advised investors to stick with a “buy-on-dips” strategy during this phase of consolidation. “With markets trading in a narrow range and external volatility high, dip-buying continues to be a rewarding approach,” he said.
Asian markets presented a mixed picture:
- Hong Kong’s Hang Seng and Taiwan Weighted indices saw strong gains of about 1% each
- Japan’s Nikkei was nearly flat, up 0.1%
- Singapore’s Straits Times Index traded slightly lower, down 0.1%
- South Korea’s KOSPI remained closed due to a national holiday
With no clear direction from global cues and persistent uncertainty, markets are likely to stay volatile in the short term, with investor attention sharply focused on upcoming policy signals and geopolitical developments.