Indian markets opened in green with Sensex and Nifty gaining marginally, but heavy selling in IT stocks like Infosys and TCS capped the rally despite strong investor sentiment
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While the rally does not appear to be as bullish as it was yesterday, a sharp decline in IT stocks is said to be one of the major reasons. The 30-share BSE Sensex advanced 68.49 points to 83,816.96 in early trade. Whereas, the 50-share NSE Nifty also went up by 51.90 points to 25,779.45, as per PTI.
From the Sensex firms, Mahindra & Mahindra, Power Grid, Reliance Industries, NTPC, ICICI Bank and ITC were among the biggest gainers. Whereas Infosys, Tata Consultancy Services, HCL Tech and Tech Mahindra were the biggest losers, declining as much as 5 per cent.
FIIs and DIIs invest heavily on Tuesday
Foreign institutional investors turned buyers on Tuesday as they bought equities worth Rs 5,236.28 crore, according to exchange data. Domestic Institutional Investors (DIIs) bought stocks worth Rs 1,014.24 crore, reported PTI.
Impact of India-US trade agreement on stock market
India and the US have agreed on a framework for a trade deal under which Washington will bring down tariffs on Indian goods to 18 per cent from the current 50 per cent. The announcement is important because the US has imposed a steep tariff on Indian goods entering American markets, effective August 27, 2025.
Soon after the India-US trade agreement, the rupee also appreciated 119 paise to 90.30 against the US dollar in early trade on Tuesday, after US tariffs on India were cut from 50 per cent to 18 per cent.
Forex traders said the 18 per cent tariff changes the story, improving India's relative position and reopening the door for FII participation.
Global markets
In Asian markets, South Korea's Kospi traded higher, while Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were quoted lower. Whereas, the US markets ended lower on Tuesday.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said, "The rally fuelled by the US-India trade deal will face hurdles to sustain. The IT selloff in the US yesterday will drag the Indian IT index, too, constraining the rally in the Indian market," as cited by PTI.
Brent crude, the global oil benchmark, climbed 0.68 per cent to USD 67.77 per barrel. Earlier on Tuesday, the Sensex ended at 83,739.13, up 2,072.67 points, or 2.54 per cent. The Nifty zoomed 639.15 points, or 2.55 per cent, to settle at 25,727.55.
(With inputs from PTI)
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