Markets edge higher amid tariff anxiety; Tata Consumer leads gainers

Benchmark indices opened flat and edged higher on Wednesday morning as investors remained cautious ahead of US President Donald Trump’s impending tariff announcements. The Sensex opened higher at 76,146.28 compared to its previous close of 76,024.51 and is currently at 76,333.16, up by 308.65 points or 0.41 per cent. Meanwhile, the Nifty opened higher at 23,192.60 against its previous close of 23,165.70 and has risen to 23,246.75, gaining 81.05 points or 0.35 per cent as of 9.45 AM.

Market sentiment remained tentative following Tuesday’s significant decline that saw the Nifty drop 354 points and the Sensex fall 1,390 points. “Nervous calm ahead of tariff announcements,” noted Devarsh Vakil, Head of Prime Research at HDFC Securities, as investors braced for Trump’s “liberation day” scheduled for 4:00 PM Wednesday (1:30 AM IST, Thursday) at the White House Rose Garden.

Foreign institutional investors (FIIs) continued their selling streak for the second consecutive session on April 1, offloading equities worth ₹5,901 crore, while domestic institutional investors (DIIs) maintained their buying momentum for the third straight day, purchasing equities worth ₹4,322 crore.

“Market’s near-term trajectory hinges on Trump’s tariff announcement details. Should Trump unveil milder-than-anticipated tariffs, markets may experience a rebound led by export-oriented sectors including pharmaceuticals and information technology. Conversely, severe tariff impositions could trigger further market deterioration,” Vakil explained.

Among sectoral performances, Tata Consumer Products emerged as the top gainer on the NSE, surging 5.35 per cent to ₹1,045.35. Other notable gainers included Maruti Suzuki, which rose 1.79 per cent to ₹11,687.15, Tech Mahindra gaining 1.49 per cent to ₹1,416, Eicher Motors up 1.47 per cent to ₹5,385.20, and ICICI Bank climbing 1.36 per cent to ₹1,336.40.

On the losing side, Bharat Electronics Limited (BEL) led the decline, dropping 4.32 per cent to ₹279.40. Nestle India fell 2.38 per cent to ₹2,180.80, while UltraTech Cement, Hindustan Unilever, and Jio Financial Services declined between 1.23 per cent and 1.27 per cent.

Technical analysts pointed to key levels that could determine market direction in the near term. “For day traders, the key support zone is at 23,100/75800. If the market can maintain trading above this level, we can anticipate a pullback rally toward 23,300-23,350/76500-76650,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities. He added that a breach below 23,100/75800 could lead to increased selling pressure.

The GST collection figures released yesterday brought some positive news to the market, showing a 10 per cent increase in March to nearly ₹2 lakh crore, the second-highest ever. This indicates “reduced fiscal burden and higher business activity,” according to Vikas Jain, Head of Research at Reliance Securities.

In the commodities market, gold prices declined from record highs due to profit-taking and concerns about US tariffs. “Gold briefly touched a historic $3,177 per ounce, only to see profit-taking erode its advance,” noted Rahul Kalantri, VP Commodities at Mehta Equities Ltd. Oil prices remained volatile, with Brent crude trading around $75 per barrel.

Market volatility, as measured by India VIX, climbed nearly 10 per cent in the previous session to 13.84 and is expected to rise further ahead of the tariff announcement. “The current momentum is ideal for accumulating multi-asset and non-overlapping stocks across various industries. However, investors with short-term expectations should align their outlook with the current market momentum,” advised VLA Ambala, Co-Founder of Stock Market Today.

Global markets showed mixed performance, with US equity markets finishing mostly higher on Tuesday. The S&P 500 and Nasdaq posted modest gains while the Dow was little changed. “Big-tech advances were led by Tesla which climbed 3.6 per cent ahead of its first-quarter vehicle deliveries report on Wednesday,” mentioned Vakil, adding that other Magnificent Seven stocks including Amazon.com, Microsoft, and Meta Platforms rose between 1 per cent and 1.8 per cent.

Given the current market conditions, analysts recommend a cautious approach with proper risk management. “Level-based trading is the recommended strategy for day traders,” suggested Chouhan, emphasising the importance of disciplined trading amid prevailing uncertainties.