Stock market opening: Sensex, Nifty to rally over US-India trade deal?
Gift Nifty futures, which are seen as an early indicator for Indian market openings, traded at 25,686.50 points at 8:24 am. This suggests that the Nifty 50 index could open higher than its previous closing level of 25,541.8.
In Short
- US President Trump hints at near India-US trade deal
- Indian markets likely to open higher on July 2
- Trade pact may help India avoid tariff hikes
Stock markets are expected to open higher on Wednesday, July 2, following comments from U.S. President Donald Trump suggesting that a trade deal between India and the United States could be close.
The remarks have brought fresh optimism to investors and raised hopes that India could avoid a hike in tariffs set to take effect soon.
Adding to the positive sentiment, U.S. Treasury Secretary Scott Bessent also said that both countries are making progress toward an agreement that could help India sidestep sharp tariff increases. The potential deal is being closely watched ahead of Trump’s July 9 deadline to impose higher tariffs.
Gift Nifty futures, which are seen as an early indicator for Indian market openings, traded at 25,686.50 points at 8:24 am. This suggests that the Nifty 50 index could open higher than its previous closing level of 25,541.8.
Nifty and the Sensex had remained mostly flat in the last two sessions, taking a pause after their recent upward run. However, the latest news from the U.S. has brought fresh hopes that markets may regain momentum.
Speaking on the expected trend, VLA Ambala, Sebi Registered Research Analyst and Co-Founder of Stock Market Today, said that the upcoming trade agreement is likely to impact selected sectors more than the broader market. According to Ambala, sectors like agriculture, auto, gems and jewellery, textiles, electronics, pharmaceuticals, energy, renewable energy and electric vehicles, and handicrafts could see the biggest effect.
Ambala added that the Nifty index currently has support at 25,460, while 25,630 acts as the resistance level. A clear move beyond this range could trigger a further shift of 1% to 2%. She expects the index to find support in the 25,300 to 25,460 range and face resistance around 25,630 to 25,850 in the next trading session.
Meanwhile, broader Asian markets showed a mixed trend. The MSCI Asia ex-Japan index slipped by 0.2%, indicating some caution in the region. Investors remained watchful of global cues and upcoming economic data.
In the United States, stock markets showed mixed movement on Tuesday. Treasury yields went up as investors reviewed weak manufacturing and jobs data. At the same time, comments from U.S. Federal Reserve Chair Jerome Powell kept investors cautious. Powell said that the central bank would wait to see how tariffs impact inflation before deciding to cut interest rates.
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