Indian stock markets opened on a cautious note on Friday, with the Nifty 50 index and BSE Sensex inching up by marginal gains as concerns over potential U.S. tariffs on BRICS nations kept investors on edge. The Nifty 50 opened at 23,296.75, marking an increase of 47.25 points (0.2%), while the BSE Sensex rose by 129.08 points (0.17%) to reach 76,888.89.
Experts are closely monitoring the upcoming decision by the Trump administration regarding possible tariff announcements on February 1. There is growing uncertainty about the potential impact on global trade and inflation, with market participants awaiting clarity on whether the tariffs will be imposed or delayed. A delay could bolster risk-on sentiment in the market, but any tariff imposition could strain supply chains and trade balances, further aggravating inflation concerns.
Ajay Bagga, a banking and market expert, spoke to ANI about the looming risk. He explained, “Trump tariffs are a significant risk for the markets. The Trump administration might announce tariffs on February 1. This could affect global trade and inflation. If the tariffs are postponed, risk-on sentiment may see a boost. The market-moving event is the Union Budget on February 1. The Nifty has closed negative for four consecutive months, marking the first such occurrence since 2021.”
Trump’s Strong Words On BRICS And U.S. Dollar
The markets were also impacted by comments from U.S. President Donald Trump on Thursday, where he stated that the BRICS nations’ attempts to move away from the U.S. Dollar would no longer be tolerated. Trump emphasized that any efforts by BRICS countries to create a new currency or back another currency would face a 100% tariff penalty, jeopardizing their ability to sell into the U.S. economy.
Sectoral indices on the NSE showed pressure in sectors like Banking, Metal, Realty, and Oil & Gas. Of the 50 stocks on the Nifty, 27 opened with gains, while 24 were under pressure.
Nifty Resistance Levels And Market Outlook
Technical experts noted that the Nifty index has reached resistance levels between 23,387 and 23,433. Akshay Chinchalkar, Head of Research at Axis Securities, commented on the market’s movements, stating, “The index has finished up for three consecutive days, and now it is targeting resistance levels between 23,387 and 23,433. The immediate hurdle is near 23,300, but the market might overcome this level.”
Major companies are set to announce their Q3 results, including Sun Pharmaceutical Industries, ONGC, Nestle India, Vedanta, and IndusInd Bank, among others. The upcoming announcements could provide further insights into the market’s trajectory in the coming weeks. Among Asian markets, Singapore’s Strait Times Index surged by 1.7%, while South Korea’s KOSPI lagged behind. Japan’s index remained flat, while Hong Kong’s Hang Seng and Taiwan Weighted Index closed in positive territory.
(With ANI Inputs)
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