Sensex, Nifty edge up, erase losses even amid tariff jitters, FII outflows; focus on EU trade deal, Budget

Share Market Today: Sensex, Nifty Update

• Sensex and Nifty recover early losses, trading slightly higher amid fragile sentiment.
• Metal, infra, and PSU stocks outperformed; auto and realty stocks lagged
• Volatility stayed high as investors await key earnings and policy cues

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Indian equity benchmarks Sensex and Nifty traded marginally higher in early trade on Tuesday, erasing opening losses, even as sentiment remained fragile amid persistent FII selling and uncertainty around global trade developments. The markets turned into moderate gains from losses with the help of buying in metal, infra and PSU stocks. Market participants are still cautious about whether the rebound can sustain ahead of key earnings and policy triggers.

At 09:40 am, the BSE Sensex was up 65 points, or 0.08 percent, at 81,602, while the NSE Nifty gained 0.14 percent, to 25,084. Market breadth was slightly negative, with 1,750 shares declining against 1,579 advances, reflecting continued stock-specific churn rather than broad risk-on sentiment.

Volatility remained elevated, with India VIX jumping over 8 percent, underscoring nervousness after the recent sell-off and ahead of crucial global and domestic cues. Analysts said markets are attempting to stabilise near the 25,000 mark on the Nifty, but conviction remains weak.

Sectorally, metals, infra and PSU banks outperformed, while auto, realty and consumption stocks lagged. On the Nifty, Adani Enterprises, Axis Bank, Adani Ports, UltraTech Cement and Grasim led the gainers, benefiting from selective buying and short-covering. In contrast, Kotak Mahindra Bank, Mahindra & Mahindra, Wipro, Maruti Suzuki and Cipla weighed on the index.

Global cues were mixed. Asian markets swung between gains and losses as US President Donald Trump reignited tariff concerns by threatening higher levies on South Korea, even as Wall Street extended its rally overnight on optimism around mega-cap earnings and expectations that the US Federal Reserve will hold rates steady this week.

According to Devarsh Vakil, head of prime research at HDFC Securities, investor focus is shifting to trade and policy developments alongside earnings. “Markets are tracking multiple moving parts -- global trade signals, currency trends and corporate guidance. With valuations elevated in pockets, earnings commentary and macro clarity will be critical for sustaining any rebound,” he said.

Institutional flows continue to be a key overhang. Foreign institutional investors sold equities worth over Rs 4,100 crore on Friday, nearly offsetting domestic institutional buying and continuing a tug-of-war between overseas risk aversion and local support. Analysts say Indian markets reflect unresolved structural concerns.

“FPIs have not only continued selling, but have increased the intensity of their selling this month, driven by rupee weakness, unimpressive Q3 earnings so far and uncertainty around the US-India trade deal,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments. He added that a recovery in sentiment would require clearer earnings traction and progress on trade negotiations.

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