Domestic equity benchmarks edged higher in early trade on Tuesday, buoyed by optimism surrounding an impending trade agreement between India and the United States. The sentiment improved after US President Donald Trump remarked that “we are close to a deal with India,” sparking cautious optimism among investors.
As of 9:30 AM, the BSE Sensex was up by 91.57 points or 0.11%, trading at 83,534.07, while the Nifty 50 gained 22.25 points or 0.09%, reaching 25,483.55.
Early buying interest was observed in IT, PSU banks, and financial services stocks. Analysts believe that the exclusion of India from the list of 14 countries facing new unilateral tariffs by the US is a strong indicator that a formal trade deal could be on the horizon.
“While the market has partially priced in the possibility of a trade pact, details such as potential sector-specific tariffs—particularly on pharmaceuticals—will be crucial for investor sentiment,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
On the technical front, analysts highlighted that the Nifty’s green candle formation followed a bullish hammer pattern seen in the previous session, indicating underlying strength in the market.
“A decisive move above the 25,500 level could open the door for an upward rally toward 25,750. Meanwhile, support is seen around 25,222 and 25,120, which could serve as strategic entry points,” said Mandar Bhojane, Technical Analyst at Choice Broking.
In sectoral indices, Nifty Bank advanced by 203 points or 0.36%, reaching 57,152.20. The Nifty Midcap 100 gained 91 points or 0.15% at 59,606.75, while the Nifty Smallcap 100 climbed 85.70 points or 0.45% to 19,035.85.
Among Sensex constituents, Kotak Mahindra Bank, Tata Motors, BEL, Adani Ports, NTPC, Asian Paints, and UltraTech Cement emerged as the top gainers. On the other hand, Titan, HCL Tech, Bharti Airtel, Mahindra & Mahindra, and Sun Pharma were among the major laggards.
On the institutional front, foreign institutional investors (FIIs) purchased equities worth ₹321.16 crore on July 7, while domestic institutional investors (DIIs) made net purchases worth ₹1,853.39 crore—reflecting strong domestic confidence in the market. Asian markets also reflected a broadly positive tone. Seoul, Hong Kong, Tokyo, Shanghai, and Jakarta traded in the green, while Bangkok was the lone market in the red.
Meanwhile, Wall Street ended lower in the previous session. The Dow Jones Industrial Average fell 422.17 points or 0.94% to 44,406.36, the S&P 500 lost 49.37 points or 0.79% to close at 6,229.98, and the Nasdaq declined 188.59 points or 0.92%, settling at 20,412.52.
