Daijiworld Media Network - Mumbai

Mumbai, Feb 4: Indian equity markets are poised to open higher on Tuesday, tracking upbeat cues from Asian peers after the US deferred its planned tariffs on Canada and Mexico, easing global trade war concerns.

GIFT Nifty futures traded at 23,538 as of 8:09 am IST, signaling a strong opening for NSE Nifty 50, which settled at 23,361.05 on Monday. While Wall Street ended lower overnight, losses were trimmed following President Donald Trump’s tariff reprieve.

Despite the temporary relief, levies on Chinese imports remain on course to take effect at 10:31 am IST, keeping investors on edge. The Indian rupee, which plunged to an all-time low in the previous session due to a stronger dollar, will also be in focus.

Since the Union Budget on Feb 1, both the Nifty and BSE Sensex have slipped around 0.5%, as global trade worries overshadowed gains in consumption-driven sectors fuelled by personal tax cuts. However, analysts remain optimistic about a rebound, with stocks linked to consumption available at attractive valuations.

Market sentiment could further get a boost from expectations of an interest rate cut by the Reserve Bank of India later this week, aimed at supporting economic growth. Meanwhile, derivatives data from the January series suggests a potential relief rally for Indian equities in February.

The Nifty 50 remains 11.1% below its all-time high of Sept 27, 2024, while mid- and small-cap indices are down by 13% and 15.7%, respectively, as concerns over sluggish earnings, slowing growth, and sustained foreign outflows weigh on investors.

Key stocks in focus:
Power Grid Corp of India reported lower-than-expected quarterly profits due to sluggish demand, while Gland Pharma posted a profit rise, helped by lower expenses offsetting production challenges in its French unit, Cenexi. Investors will also keep an eye on Asian Paints and Titan ahead of their December-quarter earnings release.