Stock Market Today: Sensex, Nifty seen opening higher amid trade talk hopes, global cues

Stock Market Today: Indian equity benchmarks, the Sensex and the Nifty 50, are set to open higher on Tuesday, tracking strong global cues and optimism around India-US trade discussions. Sentiment improved after US Ambassador to India Sergio Gor said the two countries will hold trade talks later today, raising hopes of easing bilateral trade tensions.

GIFT Nifty today

At 8:30 am, GIFT Nifty futures were trading at 25,912.5, up 53.5 points, indicating a firm start for domestic equities.

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Sentiment improved after US Ambassador to India Sergio Gor said India and the US will engage in trade talks later today. Investors are hopeful of easing trade tensions and better bilateral engagement.

Asian markets trade in the green

Asian equity markets were trading higher as investors looked past geopolitical tensions in Iran and Venezuela, and the criminal investigation involving US Federal Reserve Chair Jerome Powell.

China’s CSI 300 rose 0.54 per cent, Hong Kong’s Hang Seng gained 1.32 per cent, and South Korea’s KOSPI advanced 1.04 per cent.

Japan’s Nikkei surged 3.22 per cent amid reports that the ruling Liberal Democratic Party may dissolve the Lower House this month, paving the way for a snap election in February.

Wall Street: Dow, S&P hit fresh record highs

US markets ended at record levels overnight. The Dow Jones Industrial Average rose 0.17 per cent, while the S&P 500 added 0.16 per cent. The Nasdaq Composite gained 0.26 per cent.

Investors are now awaiting the US Consumer Price Index data for December, due later today, which could influence expectations on interest rates.

Trump flags fresh tariff threat on Iran

Separately, US President Donald Trump said on Monday evening that any country doing business with Iran will face a 25 per cent US tariff, effective immediately. The US administration did not specify which countries would be impacted.

India has long-standing trade ties with Iran, including energy imports and investments such as the Chabahar port project. Markets are watching for clarity on whether India will be affected, especially as India already faces higher tariffs in the US.

Technical view: Nifty, Bank Nifty

The Nifty snapped a five-day losing streak but continued to form a lower high and lower low pattern. During intraday trade, the index slipped to a two-month low of 25,473, falling below its 100-day moving average of 25,550, before recovering around 330 points.

The index later closed above the key support level of 25,750, which remains crucial in the near term.

Bank Nifty also broke a three-day losing streak but continued its lower high, lower low structure. The index hit a nine-day low of 58,864, slipping below the 50-day moving average of 59,082, before recovering nearly 670 points to close around 59,450.

The 58,650–58,800 zone remains a strong support area, as Bank Nifty has not closed below this level since November 14. On the upside, 59,700–59,800 is seen as an immediate resistance range.

FII-DII activity and global cues

Foreign institutional investors raised their long positions in index futures, with the long-short ratio increasing to 7.78 per cent from 7.53 per cent. However, FIIs continued to sell in the cash market for the sixth consecutive session, offloading shares worth Rs 3,638 crore.

Overall, FIIs were net sellers of Rs 3,975 crore across cash, index futures and stock futures. In contrast, domestic institutional investors extended their buying streak for a record 95th straight session, purchasing shares worth Rs 5,839 crore.

In commodities, crude oil traded above $64 a barrel, near a two-month high. Gold and silver hit fresh lifetime highs, while base metals remained firm.

The rupee ended one paisa higher at 90.15 against the US dollar, while the dollar index slipped below 98.70, snapping a four-day rally. US bond yields were steady around 4.17 per cent.

Markets will now track US inflation data, progress on India-US trade talks, and clarity on Iran-related tariffs for further direction.