INDIA-STOCKS/INDIA STOCKS-Indian markets are expected to follow Asian peers higher as the US freezes tariffs.
February 4 (Reuters) – India’s blue-chip indexes are expected to begin higher on Tuesday, tracking the bullish momentum in other Asian markets, as the United States delayed its planned tariffs on Canada and Mexico, easing fears of a global trade war.
The GIFT Nifty futures were trading at 23,538, as of 8:09 a.m. IST, implying that the blue-chip NSE Nifty 50 will begin higher than Monday’s closing of 23,361.05.
Asian markets rose the day after US President Donald Trump postponed tariffs on Canada and Mexico for a month, however penalties on China are set to go into effect at 10:31 a.m. (IST).
Wall Street markets closed down overnight, but regained some of their earlier losses following Trump’s announcement.
The Indian rupee fell to a new low in the previous session, as Trump’s tariff intentions fueled a dollar rally and rattled global financial markets.
The Nifty and BSE Sensex indexes have lost approximately 0.5% apiece since the federal budget on February 1, as global trade concerns outweighed the growth in consumption-linked industries due to personal tax cuts.
Despite global trade concerns, markets will see the budget positively because various stocks related to consumption are available at attractive prices following the recent downturn, according to several analysts.
Derivatives data at the end of the January series also pointed to a probable relief rally for Indian stocks in February, fueled by rising expectations of a rate drop by the Reserve Bank of India later this week to help the economy.
India’s Nifty 50 is 11.1% behind its all-time highs set on September 27, 2024. The broader small- and mid-caps are down around 15.7% and 13%, respectively, from their record highs.
The current drop in Indian markets has been sparked by concerns about a weak earnings season, sluggish economic growth, and persistent foreign outflows.
Stocks to Watch
** Power Grid Corp of India misses December-quarter profit forecast due to weak demand.
** Gland Pharma reports greater Q3 profit, as lower expenses minimize the impact of manufacturing difficulties at French affiliate Cenexi.
**Asian Paints and Titan will be in spotlight ahead of their December quarter earnings.
(Bharath Rajeswaran reports from Bengaluru; Sherry Jacob-Phillips edits.)
