Headwinds of likely 20-25% tariff on India makes markets nervous
India's
key equity markets snapped a three-session decline to close higher on Tuesday
as investors bought into large-cap heavyweights Reliance Industries Ltd. and
HDFC Bank Ltd. The Nifty 50 settled 140 points or 0.57% higher at 24,821.1,
managing to break the 24,800 resistance level. The BSE Sensex added 447 points
or 0.55% to close at 81,310. But overnight news of likely 20% – 25% on Indian
goods by Donald Trump makes markets nervous.
The
GIFT Nifty is down 39 points or 1.6% at 24,800 in the morning, indicating a
lower start for the benchmark Nifty 50. India seems to be in deadlock with USA
over trade tariff talks despite having over 5 rounds of discussion. The
deadline of 1st August is nearing and there is no indication of any trade deal
by then. Asian equities struggled for direction ahead of the Fed's policy
decision, while a modest progress in USChina trade talks did little to boost
sentiment. Shares in Japan fluctuated on Wednesday, while those in South Korea
and Australia remained flat, a day after the S&P 500 snapped a six-day
rally.
Fundamental Update
- L&T - Q1FY26 (YoY) Revenue up 15.52% at Rs
63,678 crore versus Rs 55,119 crore Ebitda up 12.5% at Rs 6,317 crore versus Rs
5,615 crore. Positive
- Gallantt Ispat - Q1FY26 (YoY) Revenue down 2.8% to Rs
1,128 crore versus Rs 1,160 crore. Ebitda up 15% to Rs 247 crore versus Rs 215
crore. Positive
- Jagran Prakashan - Q1FY26 (YoY) Revenue up 3.6%
to Rs 460 crore versus Rs 444 crore. Ebitda down 2.6% to Rs 63.7 crore versus
Rs 65.4 crore. Neutral
- Bank Of India - Q1FY26 (YoY) Net interest
income falls 3% to Rs 6,068.11 crore versus Rs 6,275.8 crore Net Profit up 32%
to Rs 2,252.12 crore versus Rs 1,702.73 crore. Neutral
Technical Update
- NIFTY – Nifty recovered from day’s low of
24,598 to settle above 24,800 at 24,821 on Tuesday. Index is still below 50 day
EMA of 24,937 which acts as near term resistance. Support is at 24,600 while
24,940 is near term resistance. Today’s range – 24,600 – 24,940.
- BANKNIFTY – Bank nifty has managed to halt
further slide and gained over 350 points to settle above 56K at 56,222 on
Tuesday. Index has crossed 50 day EMA of 56,114 but further gains are likely to
slow. Support is at 55,800 while resistance seen at 56,450. Today’s range –
55,800 – 56,450.
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