Indian stock market benchmarks, the Sensex and Nifty 50, are likely to open with modest gains on Tuesday. This positive outlook comes despite mixed signals from global markets. Asian indices traded higher, while US stocks achieved record closing highs on Monday.
Market Recovery and Expert Advice
On Monday, Indian markets broke a five-day losing streak. The Sensex climbed 301.93 points, or 0.36%, to close at 83,878.17. The Nifty 50 rose 106.95 points, or 0.42%, settling at 25,790.25.
Analysts attributed the recovery to renewed optimism about US-India trade negotiations. Ajit Mishra, SVP of Research at Religare Broking Ltd., commented on the current environment.
"Sentiment improved due to a mix of global and bilateral developments. Given the volatile conditions and mixed cues, investors should adopt a selective, stock-specific strategy. Maintaining disciplined risk management is crucial," Mishra advised.
Key Global Market Drivers
Asian Markets Show Strength
Asian markets opened higher on Tuesday. Japanese stocks led the rally, with the Nikkei 225 surging 3.4% and the Topix gaining 2.13%. South Korea's Kospi advanced 0.62%, though the Kosdaq dipped 0.30%. Futures for Hong Kong's Hang Seng Index also pointed to a positive opening.
Gift Nifty Indicates Positive Start
The Gift Nifty was trading around the 25,926 level. This represents a premium of nearly 50 points over the previous Nifty futures close. This gap suggests a favorable opening for Indian indices.
Wall Street Hits Record Highs
US stock markets ended Monday's session in positive territory. The S&P 500 and Dow Jones Industrial Average both closed at record highs. Gains were driven by technology and consumer staple companies.
The Dow Jones added 86.13 points, or 0.17%, to reach 49,590.20. The S&P 500 increased by 10.99 points, or 0.16%, to 6,977.27. The Nasdaq Composite rose 62.56 points, or 0.26%, closing at 23,733.90.
Notable stock movements included:
- Apple shares rose 0.34%.
- AMD stock gained 2.22%.
- Microsoft shares fell 0.44%.
- Walmart stock jumped 3%.
- Citigroup shares declined 3%.
- American Express stock plunged 4.3%.
Policy and Economic Developments
Trump Announces New Tariff Policy
US President Donald Trump declared a new tariff measure. He stated that any country conducting business with Iran will face a 25% tariff on all trade with the United States.
"Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America," Trump posted on Truth Social.
US Federal Reserve Maintains Stance
Federal Reserve Bank of New York President John Williams indicated no immediate changes to monetary policy. He described the current policy as "in a good place." Williams told reporters the Fed feels no strong pressure to adjust interest rates in the near term.
India's Inflation Rises
Retail inflation in India climbed to a three-month high of 1.33% in December. This increase was primarily due to higher food prices. The Consumer Price Index (CPI) based inflation stood at 0.71% in November and 5.22% in December 2024.
Corporate and Fiscal Updates
TCS Reports Q3 Results
Tata Consultancy Services (TCS) announced its third-quarter results for FY26. Net profit fell 11.7% quarter-on-quarter to ₹10,657 crore, down from ₹12,075 crore. Revenue increased by 2% to ₹67,087 crore from ₹65,799 crore.
EBIT for the quarter rose 2% sequentially to ₹16,889 crore. The EBIT margin remained flat at 25.2%. The IT giant declared a total dividend of ₹57 per share.
Direct Tax Collections Grow
The Union Government's direct tax collections showed strong growth. As of mid-January 2026, net collections reached ₹18.37 lakh crore. This marks an 8.8% year-on-year increase from ₹16.88 lakh crore collected during the same period last year. Data was provided by the Central Board of Direct Taxes (CBDT).
Commodity Markets Surge
Gold and Silver Prices Hit Records
MCX gold and silver prices soared to record highs. This rally tracked gains in international bullion markets. A weakening US dollar, influenced by uncertainty around a Trump administration probe into Fed Chair Jerome Powell, supported the rise.
MCX gold rates gained over 2%, approaching ₹1.42 lakh per 10 grams. MCX silver prices jumped more than 6%, surpassing ₹2.68 lakh per kilogram.
Crude Oil Prices Climb
Crude oil prices rose to near one-month highs. The increase followed President Trump's announcement of tariffs on countries trading with Iran. Brent crude oil rose 0.69% to $64.29 a barrel. US West Texas Intermediate (WTI) crude futures gained 0.71% to $59.92.
Disclaimer: The views and recommendations mentioned are from individual analysts or broking firms. They do not represent the stance of Mint. Investors should consult certified experts before making any investment decisions.
