As the 90-day pause in Trump-era US tariffs nears its end, the Indian stock market has entered a phase of cautious consolidation. Investors are closely tracking the evolving India-US trade negotiations and their implications on global supply chains. Despite the uncertainty, the Nifty 50 recently broke out above the 25,350 resistance level, signaling bullish momentum.
On Friday, the Sensex gained 193 points to close at 83,432.89, while the Nifty advanced 56 points to settle at 25,461. Market analysts say the rebound was supported by domestic institutional investor (DII) inflows, even as foreign institutional investors (FIIs) adopted a risk-off stance.
Vinod Nair of Geojit Financial Services notes that global trade headwinds and mixed cues are keeping markets in a holding pattern. Nitin Jain of Bonanza recommends a defensive strategy, focusing on domestic-driven sectors like banking and FMCG, while cautioning against export-heavy sectors such as IT, metals, and specialty chemicals, which may face pressure if tariffs are reinstated.
Technically, the Nifty remains strong and is on track to hit 26,500–26,600 in 2025, says Bonanza’s Kunal Kamble. He suggests viewing short-term dips as buying opportunities amid an overall bullish trend.
With the 90-day suspension of Trump-era tariffs on the verge of expiring, Indian equity markets are displaying signs of caution even as the Nifty 50 has crossed a crucial resistance level of 25,350. The Sensex closed Friday at 83,432.89, while the Nifty gained 56 points to end at 25,461.
Experts say that while a potential revival of US tariffs might not impact Indian markets directly, global trade tensions could pose indirect risks. Foreign Institutional Investors (FIIs) have turned cautious, but DII inflows are providing some stability.
Vinod Nair, Head of Research at Geojit, notes that "investors are adopting a wait-and-watch approach amid mixed global cues and macro uncertainty."
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Nitin Jain, Senior Analyst at Bonanza, recommends a defensive portfolio stance, with a focus on banking and FMCG sectors, which are more insulated from global shocks. Export-oriented industries—especially IT, specialty chemicals, and metals—may face near-term volatility, he warns.
From a technical perspective, the market retains its strength. “Nifty is poised for new all-time highs in the coming months,” says Kunal Kamble, Sr. Technical Analyst at Bonanza. He forecasts a target of 26,500–26,600 for Nifty in 2025, with dips presenting buy-on-decline opportunities.
