Nifty, Sensex open higher amid US 50% tariffs; FMCG stocks gain

Mumbai: Indian benchmark indices opened slightly higher on Friday as markets attempted to absorb the impact of steep tariffs imposed by the United States.

The Nifty 50 rose 36 points, or 0.15 per cent, to 24,537 in early morning trade, while the BSE Sensex gained 118 points, or 0.15 per cent, to 80,199. The BSE Midcap and Smallcap indices were largely flat.

Among sectors, the FMCG index climbed 1.59 per cent, while the auto index fell 0.84 per cent. The Nifty Private Bank index gained 0.43 per cent.

Top gainers included Kotak Mahindra Bank, Trent, HUL, Tata Steel, TCS and Asian Paints, while laggards were Shriram Finance, Apollo Hospitals, Titan Company, L&T and ICICI Bank.

Analysts noted that Nifty has formed a strong bearish candle on the daily chart, signalling continued selling pressure.

“Technically, a decisive move above 24,700 could open the way towards 24,850 and 25,000 zones, while immediate support is placed at 24,337, followed by the 200-day EMA at 24,260 levels, which may attract fresh long positions,” said Amruta Shinde from Choice Equity Broking.

Experts believe the 50 per cent tariff imposed on India by the US, which has already come into effect, could affect market sentiment in the near term. However, the market is unlikely to panic, as these high tariffs are seen as a short-term aberration that may be resolved soon.

“The market’s negative sentiment, triggered by the 50 per cent Trump tariff and India’s high valuations, has encouraged FII (Foreign Institutional Investors) short positions. If a positive decision on tariff policy comes quickly, sentiment could shift and short covering may occur,” said Dr VK Vilayakumar, Chief Investment Strategist at Geojit Investments Limited.

He added that India’s policy initiatives, including fiscal stimulus through the budget, monetary easing via rate cuts, and the upcoming GST rationalisation, should support economic growth and corporate earnings in the coming quarters, potentially leading to a market rally grounded in fundamentals.

US markets rose overnight, with the Dow Jones Industrial Average up 0.16 per cent, the Nasdaq advancing 0.53 per cent, and the S&P 500 gaining 0.32 per cent.

Asian markets traded mixed in the morning session, diverging from Wall Street, as investors assessed regional economic data. Core consumer prices in Tokyo rose at a slower pace in August, while the unemployment rate eased to 2.3 per cent in July, down from 2.5 per cent the previous month.

In China, the Shanghai Composite was flat with a 0.07 per cent uptick, while Shenzhen added 0.81 per cent. Japan’s Nikkei fell 0.43 per cent. Hong Kong’s Hang Seng Index rose 0.76 per cent, and South Korea’s Kospi slipped 0.12 per cent.

On Thursday, foreign institutional investors continued their selling streak for the fourth consecutive day, offloading equities worth Rs 3,856 crore. Domestic institutional investors (DIIs) remained net buyers, purchasing equities worth Rs 6,920 crore.

IANS