Stock Market Today: Nifty, Sensex Open Strong After Trump Tariff U-Turn; Metal, IT in Green, TCS in Red

Stock Market Today Opening: Nifty and Sensex opened on a stronger note indicating a recovery from the losses it made earlier in the week due to Trump tariff uncertainty. Nifty 50 opened above 22700 and BSE Sensex was trading 900 points higher creating a favourable situation for investors for trading today.

Nifty Auto stocks, including Samvardhana Motherson, were trading in green after Donald Trump announced 90-day tariff break on Wednesday. Several other stocks including IT companies, pharma, chemicals were trading in green. However, TCS shares were under pressure after the company reported a weaker than expected Q4 earnings.

Muthoot Finance shares dropped significantly to 6.12% on BSE during the opening session on Friday. Tata Steel stock was up more than 6%. All the broadmarket indices were trading in green today including small-, mid-, and large-cap indices. Nifty Metal and Nifty Pharma were trading higher at 3% on Friday.

Gift Nifty was up more than 400 points on Friday, indicating a strong start of the trading session today. The positive sentiment of the Indian stock market investors was the result of United States President Donald Trump's U-turn on trade tariffs.

Nifty 50 closed nominally lower, below 2400 on Wednesday, whereas BSE Sensex was down 379 points to 73847 on Friday. The latest announcement by the Reserve Bank of India's Monetary Policy Committee to reduce its benchmark repo rate by 25 basis points to 6% has likely further helped in easing concerns about economic growth and inflation amid continued geopolitical uncertainty.

On the global front, the US Stock market continued to decline on Thursday. The Dow Jones Industrial Average slumped nearly 2,100 points at its worst. Whereas, S&P 500 fell nearly 6% and the Nasdaq Composite was down over 7% today.

Stock Market Today Outlook

As the Nifty and Sensex opened in green on Friday, investors are likely to experience heightened volatility throughout the day.

"After a positive opening, Nifty can find support at 22,300 followed by 22,200 and 22,000. On the higher side, 22,550 can be an immediate resistance, followed by 22,750 and 23,000.
The charts of Bank Nifty indicate that it may get support at 50,200 followed by 49,900 and 49,700. If the index advances further, 50,700 would be the initial key resistance, followed by 51,000 and 51,400," noted Hardik Matalia, Derivative Analyst, Choice Broking.

While the stock market cracked in previous session, there are chances of another wave of buying if Nifty 50 land in the 22,500 vicinity, according to Anand James, Chief Market Strategist, Geojit Investments Limited.
"We expect another wave of buying should we land in the 22500 vicinity subsequently. Expect weakness to dominate if below 22350, though a fall below 22160 is less likely. Alternatively, a direct rise above 23140 could initiate fresh wave of buying," said James.

Commenting on the stock market outlook for the day, Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said, " Technically, Nifty is expected to navigate a volatile session, oscillating within a consolidation zone amidst positive market breadth but cautious sentiments. Key levels to watch include support at 22300 and resistance at 23000, with broader market trends indicating a positive start tempered by potential spikes in volatility.

Stock Market Recap on Thursday

On Thursday, Nifty Metal cracked nearly 1.5% post Trump tariff announcement for China. Additionally, NBFC shares were also under pressure after the RBI announced to bring a uniform norms for gold loans to end unfair practices during lending. The FMCG, consumer durable and auto indices showed resilience despite market descent, one of the factors being prediction of a normal monsoon season by Skymet (a leading private weather forecaster).