Indian Market Opens Lower Amid Tariff Worries
The Indian stock market is anticipated to open with a weaker tone on August 6, with key indices Sensex and Nifty expected to decline due to negative global cues and domestic concerns. GIFT Nifty is currently trading around 24,661, suggesting a cautious start to the trading day. Yesterday's Market Performance * The Sensex closed down by 308 points at 80,710. * The Nifty settled below 24,700, down 73 points to 24,649. * Selling pressure affected most sectoral indices, excluding autos, signaling overall market weakness. Global Market Cues * Asian equities displayed mixed trends overnight. * This was influenced by uncertain factors, including weak US services data and concerns about the Federal Reserve's policy outlook. US Tariffs and Trade Tensions * A key factor affecting market sentiment is the potential for increased US tariffs on Indian exports. * Former US President Donald Trump warned of a significant tariff increase, accusing India of profiting from Russian oil re-exports. * This adds to trade tension worries that have impacted the market since last week. Technical Analysis The Nifty is approaching a crucial support zone around 24,500, which is near its 89-day EMA. * Breaking below this level could potentially lead the index down to a key bullish gap near 24,200, close to the 200-day SMA. * Resistance is observed near 24,800. * The Bank Nifty is also facing downward pressure, with support near its June low around 55,149. * Momentum indicators currently suggest a bearish trend. Corporate News Bharti Airtel's Q1 Results * Bharti Airtel reported strong Q1 results. * Profits increased by 43% year-over-year to Rs 5,947.9 crore. * Revenue rose by 28.5%. Upcoming Earnings * Hero MotoCorp, Bajaj Auto, and Divis Laboratories are scheduled to release their quarterly earnings today. * These results may influence market direction later in the day. Overall Market Outlook Investors are expected to remain cautious today. This cautiousness is due to: * The RBI policy decision. * Ongoing geopolitical tensions. * Concerns about trade and global market conditions.