Sensex and Nifty Steady as Investors Await Trade Deal Clarity

As of 12:20 p.m. IST, the Nifty 50 inched down by 0.03 per cent to 24,861, while the BSE Sensex edged lower by 0.35 per cent to 81,780.

Market Update at 12:30 PM: Indian markets traded flat in early hours on Tuesday, with benchmark indices showing minimal movement due to the absence of fresh catalysts. This marked the third consecutive session of range-bound activity, as investors awaited developments in the ongoing India-U.S. trade discussions.

As of 12:20 p.m. IST, the Nifty 50 inched down by 0.03 per cent to 24,861, while the BSE Sensex edged lower by 0.35 per cent to 81,780.

Last week, U.S. President Donald Trump stated that India had proposed a trade agreement offering zero tariffs on American products.

Out of 13 key sectoral indices, seven were in the red. However, metal and IT stocks outperformed. The broader Small-Cap index gained 0.3 per cent, while the Mid-Cap index slipped 0.1 per cent.

Metal stocks gained momentum after China, a major consumer of metals, reduced its benchmark lending rates for the first time since October to cushion the economic impact of its trade conflict with the U.S. Tata Steel and Hindalco advanced 1.6 per cent and 1 per cent, respectively, featuring among the top Nifty 50 performers.

IT stocks also rebounded by around 1 per cent, recovering ground lost in the prior session following Moody’s downgrade of the U.S. credit rating.

Among notable stock moves, Pfizer surged 11 per cent, topping the Nifty 500 list after reporting an 85 per cent jump in fourth-quarter profit, largely due to a one-time gain from property divestment. Real estate firm DLF climbed 5 per cent, supported by robust demand in its premium housing segment that boosted its Q4 earnings.

Market Update at 10:20 AM: India's key stock indices opened on a flat note Tuesday, with early gains in information technology stocks balancing out declines across most other sectors. 

As of 9:20 a.m. IST, the Nifty 50 edged up 0.12 per cent to 24,975.85, while the BSE Sensex moved 0.15 per cent higher to 82,185.43. Out of the 13 major sectoral indices, 10 were trading in the red. 

Broader indices like the Nifty Small-cap and Mid-cap slipped around 0.3 per cent each. Meanwhile, IT stocks rebounded by nearly 1 per cent, recovering much of the ground lost in the previous session following Moody's downgrade of the U.S. credit rating.

Pre-Market Update at 8:00 AM: Indian stock markets are expected to open on a strong note today, May 20, 2025, as suggested by cues from the GIFT Nifty. At 7:30 am, the GIFT Nifty was up 82 points, indicating a start near the 25,073 mark.

Asian markets rebounded after four straight sessions of losses, drawing inspiration from Wall Street’s continued upward momentum, where the S&P 500 is inching toward bull market territory. Meanwhile, discussions between India and the U.S. over a phased trade agreement are also underway, with hopes for an interim deal by July.

On the domestic front, investors will keep a close eye on company-specific movements, as several major firms are set to release their March quarter results today. These include Hindalco Industries, United Spirits, Dixon Technologies, Solar Industries, Max Healthcare, Torrent Pharma, Zydus Lifesciences, and NHPC.

In terms of institutional activity, both foreign and domestic institutional investors were net sellers on Monday. FIIs offloaded shares worth Rs 525.95 crore, while DIIs sold equities amounting to Rs 237.93 crore.

Markets closed lower on Monday, weighed down by IT stocks following Moody’s downgrade of the U.S. economy. The Sensex fell 271.17 points to close at 82,059.42, and the Nifty 50 dropped 74.35 points, ending at 24,945.45.

In the U.S., the markets extended their gains, closing higher for a sixth straight session. Easing tensions with China helped boost sentiment. The Dow rose by 137.33 points to 42,792.07, the S&P 500 added 5.22 points to 5,963.60, and the Nasdaq inched up by 4.36 points to 19,215.46.

The U.S. dollar held steady early Tuesday, pausing after a week of decline. As of 7:24 am IST, the dollar index stood at 100.25. Gold prices saw a minor dip of 0.22 per cent in early Asian trade, likely a technical pullback following Monday’s 1.5 per cent jump. However, concerns around the U.S. fiscal deficit may support continued interest in gold.

Crude oil prices edged higher amid uncertainty around U.S.-Iran nuclear talks. Brent crude was up 0.15 per cent at USD 65 per barrel, while U.S. crude gained 0.32 per cent, settling at USD 62.08.

For today, Titagarh Rail Systems, Hindustan Copper and Mannapuram Finance continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.