Benchmark indices Nifty 50 and Sensex are likely to see a gap-up opening in trade on February 9, as India and the U.S. secure their trade agreement. Washington trimmed its tariff rate on Indian products from 50 percent to 18 percent.
The India-US trade pact has removed a key overhang, improved export visibility, and triggered a revival in foreign investor interest, noted experts.
At 7.20 am, the GIFT Nifty index was quoting 25,930, higher by 232.5 points or 0.90 percent in trade.
Among key stocks, auto ancillaries, textile firms, and fisheries will be in focus today, as they are set to see a significant boost.
Electronics exports remain largely unaffected, having benefited from exemptions even under prior tariff regimes. “Incremental beneficiaries from improved clarity include diamonds & jewellery, textiles, machinery, chemicals and automobiles, where tariff reductions materially enhance competitiveness,” said JM Financial. Pharmaceuticals and aircraft components continue to enjoy near-zero duty access
Further, state-run financiers REC and PFC will be in focus, after the boards of the companies accorded in-principle approval for restructuring, in the form of a merger with each other, while ensuring that the merged entity remains a ‘Government Company'.
“Easing concerns over a potential US-Iran conflict, robust domestic institutional inflows, a stabilising rupee and sustained traction in Budget-led capex themes are adding to the positive momentum,” said Ponmudi R, CEO of Enrich Money.
On the technical front, Nifty's immediate support is placed near 25,500, aligning with recent swing lows, while 25,800 acts as immediate resistance, coinciding with a heavy call-writing zone. A stronger resistance lies in the 25,900-26,000 band, marked by psychological significance and prior supply.
Overall, the sentiment has turned constructive, with markets now focusing on the durability of FII inflows and early signs of a recovery in export-oriented sectors.
Report by Network18
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