Indian equity benchmarks recovered from early lows even as Trump imposed steep new tariffs on Indian exports. Analysts flag likely expiry volatility.
Indian equity markets recovered from opening lows even as the U.S. President Donald Trump imposed an additional 25% tariff on Indian exports, raising the total levy to 50% — among the highest globally. He has also warned that “more sanctions are coming.” The Nifty index hovers around 24,500 as it heads into the weekly expiry session.
India responded by calling the tariffs “unfair, unjustified, and unreasonable” and stating that it is “extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.”
At 09:40 a.m. IST, the Nifty 50 traded 59 points lower at 24,514, while the Sensex was down 229 points at 80,314. Broader markets recovered to trade marginally in the green.
Meanwhile, the retail sentiment on Stocktwits for Nifty is back to ‘neutral’ amid ‘high’ message volumes.
Stock Watch
Sectorally, media, pharma, and technology gain ground, while auto, metals, and energy saw some selling pressure.
Textile stocks took a knock on Trump’s tariff hikes. Gokaldas Exports, Welspun Living, and KPR Mills fell between 1% to 3%. Other export-sensitive stock such as Motherson Sumi (-1.5%).
Hero Motocorp is the top Nifty gainer (+1.5%), followed by Trent (+1%), driven by their June quarter (Q1 FY26) earnings performance. Bernstein maintains an ‘Outperform’ rating on Trent, with a target price of ₹6,500, indicating 21% upside.
BHEL shares fell over 4% after its losses widened in Q1. Other earnings laggards include Jindal Stainless (-3.6%), IRCON (-2%), and Prince Pipes (-4.5%). On the other hand, Fortis Healthcare (+3.5%), Bajaj Holding (+3.7%) gained on strong Q1.
Meanwhile, Kotak Mahindra Bank and Eternal shares fell on the back of large block deals.
Watch out for Titan, LIC, HPCL. Godrej Consumer, Biocon, Cummins, Metropolis Healthcare, NALCO, Kalyan Jewellers, Apollo Tyres, Page Industries, Ramco Cements, Shree Renuka Sugars, and Sai Life Sciences, among others, as they report quarterly earnings today.
Markets: The Road Ahead
From a technical standpoint, SEBI-registered analysts on Stocktwits shared the trade setup.
Ashish Kyal said Trump’s tariff moves will spark a gap-down start near 24,490 for the Nifty index, but this will be temporary. He does not rule out the possibility of a move back up in green to 24,590 levels. On the 15-minute timeframe, a close below 24,470 would be a concern, Kyal cautioned. He sees the markets rangebound between 24,470 and 24,590.
Pradeep Carpenter noted that since Thursday is the weekly expiry, markets may see increased volatility and short-covering activity if downside momentum fades. However, key support zones are intact, and short-heavy FII positioning suggests the potential for a sharp reversal if downside momentum stalls. A lack of follow-through on the downside could trigger a rebound toward 25,800–25,850, the nearest congestion zone, he added.
Varunkumar Patel noted that Foreign Institutional Investors (FIIs) have sold over ₹5,000 crore worth of stocks in the cash segment. In F&O, they have covered some of their shorts in Bank Nifty, but overall positioning remains heavily on the short side — indicating continued caution from institutional investors.
Patel added that resistance for Nifty is seen around 24900, while support is seen near 24300. Any bounce should be viewed as a shorting opportunity until we see a decisive breakout. He advised traders to avoid overtrading in volatile zones and focus only on high-conviction trades with tight stop losses.
Prabhat Mittal identified Nifty support at 24,480 with resistance at 24,720. For the Bank Nifty, he sees support at 55,100 and resistance at 55,700.
Global Cues
Globally, Asian markets traded higher, while crude oil prices fell to an eight-week low on Trump’s commentary on Russian ‘sanctions’.
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