Indian Stock Market Opens Higher; US Tariff News and FII Selling in Focus

The Indian stock market opened on a positive note on Thursday, with benchmark indices trading higher after a brief holiday. The S&P BSE Sensex rose 202.50 points to 83,661.65, and the NSE Nifty50 added 27.55 points to 25,625.20 in early trade, supported by gains in Fast-Moving Consumer Goods (FMCG) and auto sector stocks.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that global market turbulence was avoided due to the previous day's holiday. However, he pointed to significant upcoming developments concerning President Trump's tariffs, with the US Supreme Court hearing a petition against them. Observations by some judges suggesting the President might have overstepped his authority could lead to major market volatility. A judgment in favor of these observations could trigger a strong rally in emerging markets, including India, which has been targeted for substantial tariffs.

Among the top performers, Asian Paints surged 4.13%, followed by Mahindra & Mahindra at 2.10%. Sun Pharma, Larsen & Toubro, Reliance Industries, and State Bank of India also posted gains. Conversely, Power Grid Corporation led the decliners, down 1.88%, followed by Eternal (1.45%), Bajaj Finance (0.77%), HDFC Bank (0.39%), and Bharat Electronics (0.26%).

Despite the positive opening, Dr. Vijayakumar cautioned that sustained selling by FIIs, amounting to Rs 15,336 crores in the last five days, and increasing FII short positions are likely to weigh on the market in the near term.

Impact: This news can have a significant impact on the Indian stock market. Developments in the US Supreme Court regarding tariffs could lead to substantial volatility. A favorable judgment for emerging markets could trigger a rally, while continued FII selling could exert downward pressure. Rating: 7/10

Heading: * FMCG: Stands for Fast-Moving Consumer Goods. These are products that are sold quickly and at a relatively low cost, such as packaged foods, beverages, toiletries, and over-the-counter drugs. * FIIs: Stands for Foreign Institutional Investors. These are investment funds registered in a country outside the host country, and they invest in the host country's financial markets, such as stocks and bonds. Their large-scale buying or selling can significantly influence market movements. * Trump tariffs: These are taxes imposed by the United States government under President Donald Trump's administration on imported goods from various countries. The purpose was often to protect domestic industries and reduce trade deficits. Such tariffs can impact international trade flows and investor sentiment globally. * Dalal Street: A colloquial term referring to the Indian financial and business district, specifically the area in Mumbai where the Bombay Stock Exchange (now BSE Limited) is located. It is often used as a synonym for the Indian stock market. * Sensex: The S&P BSE Sensex is a stock market index of 30 large, well-established, and financially sound companies listed on the Bombay Stock Exchange (BSE). It is one of the most watched indices representing the performance of Indian equity markets. * Nifty50: The NSE Nifty 50 is a benchmark Indian stock market index that represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange of India (NSE). It is widely used to gauge the performance of the Indian equity market.