Markets Trade Mixed by Midday; IT and Metal Stocks Lead Gains Amid Global Sentiment Boost

he Nifty 50 declined by 0.08 per cent to 24,732 by 12:20 p.m. IST, while the Sensex was also down by 0.01 per cent, trading at 81,295.

Market Update at 12:30 PM: On Thursday, Indian equity markets moved higher, driven by a strong performance in the information technology sector. The Nifty 50 declined by 0.08 per cent to 24,732 by 12:20 p.m. IST, while the Sensex was also down by 0.01 per cent, trading at 81,295. The rally followed a positive reaction to a U.S. trade court's decision blocking a significant portion of President Donald Trump's proposed “Liberation Day” tariffs. Although the ruling has been challenged by the White House, it sparked optimism that the most severe tariff measures might not materialise, lifting investor confidence globally.

The dollar strengthened, while gold saw slight declines as investors leaned towards riskier assets. Global markets, including Asian indices and U.S. futures, responded positively, supported by Nvidia's strong earnings and positive guidance.

In India, 11 of the 13 sectoral indices advanced. The Nifty IT index rose by 1 per cent, leading the gains, as many Indian tech firms generate substantial revenue from the U.S. The small- and Mid-Cap indices also edged higher by 0.4 per cent and 0.2 per cent, respectively.

In stock-specific moves, Jindal Stainless rose 2.2 per cent, JSW Steel gained 1.7 per cent, and Tata Steel advanced 1 per cent, pushing the Nifty Metal index up by 1.1 per cent. J

Elsewhere, Natco Pharma rose 3 per cent, and Insecticides India surged 6 per cent after both firms posted strong quarterly earnings.

Market Update at 10:20 AM: On May 29, Indian stock markets opened in the green, taking cues from gains in Asian equities and positive movement in Wall Street futures. This optimism followed a U.S. trade court ruling that blocked former President Trump's attempt to implement sweeping tariffs on imports from key trading partners. As of 9:15 a.m. IST, the Nifty 50 was up by 0.29 per cent at 24,825.10, and the Sensex climbed 0.34 per cent to 81,591.03.

All 13 major sectoral indices saw gains, while the broader Small-Cap and mid-cap indices rose by approximately 0.5 per cent each. The Court of International Trade concluded that Trump overstepped his authority with the proposed tariffs. While the ruling is being challenged by the White House, it brought some relief to investors by reducing fears of aggressive trade restrictions, thereby improving global market sentiment.

Following the court's decision, the U.S. dollar strengthened, and gold, often considered a safe-haven asset, dipped slightly as investor confidence improved. Additionally, Asian markets and U.S. futures received a boost from Nvidia’s better-than-expected quarterly sales and upbeat revenue forecast announced after U.S. trading hours.

Pre-Market Update at 8:00 AM: On Thursday, May 29, Indian equity markets are set for a positive start. At 7:32 am, the GIFT Nifty was trading around 24,843, gaining 88 points from the previous close. Gains in Asian markets and rising US futures followed a US federal court ruling that stopped President Donald Trump from enforcing broad tariffs under emergency powers.

Market sentiment remains cautious, with trading expected within a narrow range due to global developments and the monthly F&O expiry scheduled for the day.

India’s industrial output, as measured by the Index of Industrial Production (IIP), grew by 2.7 per cent in April 2025, slowing from the 5.2 per cent growth recorded in April 2024. This slowdown was mainly due to weaker results in manufacturing, mining, and electricity sectors. However, the National Statistics Office (NSO) revised March 2025’s IIP growth upward to 3.9 per cent, higher than the earlier estimate of 3 per cent.

Though the market might start on a muted note, activity is likely to pick up with several key companies announcing their Q4 results today. Bajaj Auto, Mazagon Dock Shipbuilders, Samvardhana Motherson International, Suzlon Energy, Alkem Laboratories, Prestige Estates Projects, SJVN, Ipca Laboratories, NBCC (India), Jubilant Agri and Consumer Products, Ola Electric Mobility, Wockhardt, and Amara Raja Energy & Mobility are all scheduled to release their earnings.

On May 28, Foreign Institutional Investors (FIIs) were net buyers, acquiring equities worth Rs 4,662.92 crore. Domestic Institutional Investors (DIIs) also bought shares valued at Rs 7,911.99 crore during the same session.

Indian markets extended their decline on Wednesday, with the Nifty 50 slipping 69.05 points (0.28 per cent) to close at 24,757.15, and the Sensex falling 239.31 points (0.29 per cent) to end at 81,312.32. Despite positive global cues, the domestic market was weighed down, notably by selling pressure in ITC shares.

Asian markets and US stock futures rose on Thursday following the court’s decision to block Trump’s proposed "Liberation Day" tariffs. This development also strengthened the US dollar against major safe-haven currencies.

In contrast, US markets ended Wednesday lower as investors digested the Federal Reserve’s latest meeting minutes. The Dow Jones dropped 244.95 points (0.58 per cent) to 42,098.70, the S&P 500 lost 32.99 points (0.56 per cent) to 5,888.55, and the Nasdaq fell 98.23 points (0.51 per cent) to 19,100.94. Early Thursday trading showed a rebound in US futures.

The Court of International Trade in Manhattan ruled that President Trump overstepped his authority by attempting to impose tariffs without congressional approval, underscoring that trade regulation lies solely with Congress under the US Constitution.

In the Federal Reserve meeting held on May 6–7, officials discussed the challenges ahead, including the possibility of rising inflation alongside increasing unemployment—a scenario that could lead to a recession.

For the quarter ending April 27, 2025, Nvidia reported revenues of USD 44.1 billion, marking a 12 per cent increase from the previous quarter and 69 per cent year-on-year growth. Adjusted earnings per share stood at 81 cents, or 96 cents excluding one-time charges. Nvidia projects Q2 revenue around USD 45 billion, slightly below analysts' average forecast of USD 45.90 billion, factoring in an USD 8 billion impact from US export restrictions on AI chips to China.

The US dollar index climbed above 100, hitting 100.40, supported by the court ruling. Crude oil prices also rose, with Brent crude up 1.20 per cent at USD 65.68 per barrel and WTI crude up 1.29 per cent at USD 62.64. Conversely, gold prices fell to their lowest since May 20, pressured by a stronger dollar and improved risk sentiment. Spot gold declined 0.5 per cent to USD 3,262.99 per ounce, while US gold futures dropped 1.1 per cent to USD 3,259.50.

There are not any stocks banned for trading in the F&O segment today.

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