Indian share market is expected to open marginally higher on Tuesday, tracking mixed cues from foreign peers amid persistent concerns regarding global trade war. The firm trend at Gift Nifty also indicates a gap-up start for Sensex and Nifty, with Gift Nifty futures trading 47 points, or 0.20%, higher at 23,477 mark. However, continued uncertainty regarding the U.S. tariff plans will keep investors on edge. In absence of any major global or domestic developments, markets will see stock specific reactions. The crude oil prices and rupee movement will also impact domestic equity market.

Among individual stocks, Vodafone Idea, Berger Paints, Lupin, AstraZeneca Pharma, and Birlasoft will be in focus as they are set to release their December quarter results today. On the other hand, investors will react to earnings numbers of Eicher Motors, Apollo Hospitals, Nykaa, Grasim Industries, Bata India, and Patanjali Foods, which released their Q3 results post market hours on Monday.

AI, steel stocks propel U.S. stocks higher

Wall Street started the week on a positive note, with all three major U.S. indices closing higher in overnight trade, led by gains in artificial intelligence and steelmakers stocks. The Dow Jones Industrial Average ended 0.4% higher, the S&P 500 rose 0.7%, and the Nasdaq Composite added 1%. AI-related stocks such as Nvidia, Broadcom, Amazon, and other rose up to 3% amid value buying, while metals stocks such as Nucor, Century Aluminum, Alcoa, and Steel Dynamics rallied after U.S. President Donald Trump said he would impose additional tariffs on steel and aluminum imports.

Asian stocks edge lower as tariff looms

Equity markets in Asia-Pacific region were reeling under selling pressure on Tuesday, undermining firm cues from U.S. stocks, as investors continued to assess President Donald Trump’s tariff plans. Australia’s ASX 200 ended a tad higher, while stocks in mainland China, Hong Kong, Indonesia, and Singapore were down up to 0.4%. The stock market in Japan remained closed for a public holiday.

Domestic markets ends lower for 4th straight session

On Monday, the domestic bourses ended in red zone, extending losses for the fourth consecutive session, as persistent concerns over global trade and weak earnings report dented investor sentiment. The BSE Sensex closed at 77,311.80, falling 548.39 points or 0.70%, while the Nifty 50 tumbled 178.35 points or 0.76 to end at 23,381.60. The total market capitalisation of all BSE-listed companies dropped by Rs 6.21 lakh crore to Rs 417.72 lakh crore. The metal stocks emerged as top laggards amid escalating trade tensions, with U.S. President Donald Trump threatening to impose additional tariffs on steel and aluminum imports. The top 5 losers on the Sensex pack were PowerGrid, Tata Steel, Zomato, Titan, and Bajaj Finance.

FIIs maintain selling stance

The foreign institutional investors (FIIs) continue to sell Indian equities in cash market, while DIIs maintained their buying stance. FIIs sold equities worth Rs 2464 crore on Monday, while DIIs purchased equities worth Rs 1516 crore. Overall, FIIs have withdrawn equities worth 12,000 crore so far in February after net fund outflows of Rs 87,374.66 crore in January, 2025.

Technical outlook

Looking ahead, 23,200 emerges as a crucial support level for Nifty50, and a decisive break below it could strengthen the bearish sentiment, potentially dragging the index toward its January low of 22,800, says Ajit Mishra, SVP, Research, Religare Broking. “On the upside, the 23,600-23,900 zone is expected to act as a strong resistance. Given the mixed sectoral trends, opportunities exist on both sides, making stock selection and risk management key in the current market scenario,” he said.

Osho Krishnan, Sr. Analyst, Technical & Derivatives of Angel One, said that it would be wise to avoid making aggressive bets until there is a clearer understanding of the trend. “The zone of 23300-23200 is likely to serve as crucial support, while a break below the same could push prices back toward the 23000 psychological zone. On the flip side, 23500-23700 is likely to be a critical hurdle, coinciding with the upper band of the ‘Falling Wedge’, and a decisive breakout could only trigger buying momentum in the comparable period.”

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