Markets open flat as Trump’s second term begins; Healthcare, Cement stocks lead gains
Indian equity markets opened marginally lower on Tuesday morning as investors digested U.S. President Donald Trump’s inaugural speech and its potential implications for global trade, while healthcare and cement stocks emerged as top performers in early trade.
The Sensex opened higher at 77,261.72 compared to its previous close of 77,073.44 but is currently trading at 76,929.21, down by 144.23 points or 0.19 per cent. Similarly, the Nifty opened at 23,421.65 against its previous close of 23,344.75 and is now at 23,331.95, slipping 12.80 points or 0.05 per cent.
“Trump 2.0 has kicked off without much clarity on Trump’s likely economic decisions. The indication of a likely 25 per cent tariffs on Canada and Mexico suggests that the tariff hike policy will be implemented gradually,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The U.S. dollar index weakened to 108.43, while the 10-year bond yield declined to 4.54 per cent, potentially benefiting emerging markets like India. However, persistent foreign institutional investor (FII) outflows remain a concern, with net sales exceeding ₹50,000 crore in January so far.
Apollo Hospitals emerged as the top gainer on the NSE, rising 2.54 per cent, followed by UltraTech Cement (+2.31 per cent), Wipro (+1.38 per cent), BPCL (+1.33 per cent), and Sun Pharma (+1.03 per cent).
On the flip side, Adani Enterprises led the losses, declining 0.83 per cent, followed by ONGC (-0.82 per cent), Trent (-0.79 per cent), NTPC (-0.54 per cent), and Kotak Mahindra Bank (-0.51 per cent).
In corporate news, TCS announced the inauguration of a new delivery center in Toulouse, France, focusing on aerospace, manufacturing, and defense sectors. “The facility aims to leverage advanced technologies such as artificial intelligence, generative AI, machine learning, and data analytics,” the company stated in a regulatory filing.
Oil prices declined following Trump’s plans to boost domestic crude production, with Brent crude trading below $80 per barrel. “The U.S. President vowed to declare a national emergency to rising domestic production amid cooling inflation,” noted Vikas Jain, Head of Research at Reliance Securities.
Technical analysts remain cautiously optimistic while emphasizing the need for selective stock picking. “The benchmark index Nifty is currently positioned at its 50-week EMA, which is an averaging zone, making it an attractive point for mid- and long-term investors. However, the current market calls for a cautious selection of stocks,” said VLA Ambala, Co-Founder of Stock Market Today. She added that “despite previous anti-China sentiments, Trump has expressed eagerness to negotiate with China to strengthen trade and political objectives. Such efforts could have lasting impacts on various governments, including India, Russia, and Europe, and alter global economic positioning.”
Ameya Ranadive, Senior Technical Analyst at StoxBox, noted that “the index is expected to attract further bullish momentum upon decisively surpassing the resistance near 23390 on a closing basis.”
Shrikant Chouhan, Head of Equity Research at Kotak Securities, identified key support levels at 23,170 and 23,000 for the Nifty, suggesting “if it sustains above this level, it could bounce back to 23,450-23,500.”
Market breadth showed improvement, with 54 per cent of NSE-listed stocks trading above their 10-day moving average, indicating growing bullish sentiment in intermediate trends. However, analysts advise caution given the current global uncertainties and continuing FII outflows.
