Markets opened on a muted note Tuesday morning, with the Nifty 50 starting at 24,891.35 from its previous close of 24,876.95 and trading at 24,880.85, up just 3.90 points or 0.02 per cent, at 9.45 a.m. The Sensex opened at 81,319.11 against its previous close of 81,273.75 and was at 81,328.68, higher by 54.93 points or 0.07 per cent, as investors remained cautious ahead of key global events and assessed mixed domestic developments.
The benchmark indices struggled to build on Monday’s strong performance, which saw the Nifty briefly cross the psychologically important 25,000 mark intraday before closing at 24,876.95. Market analysts noted that this level continues to act as a crucial resistance for any sustained upward movement.
“The Indian market is likely to open on a flat and muted note on Tuesday, after posting strong gains at the start of the week,” said Hariprasad K, Founder of Livelong Wealth. “The index ended at 24,876.95, closing above its 9-day exponential moving average, which helps maintain near-term momentum.”
Reliance Industries emerged as the top gainer in early trade, surging 2.03 per cent to ₹1,409.80, followed by Bharti Airtel which climbed 1.73 per cent to ₹1,925.00. Hero MotoCorp gained 1.68 per cent to ₹5,067.90, continuing the automotive sector’s strong run from the previous session. Bajaj Auto and Eicher Motors also posted gains of 0.73 per cent and 0.56 per cent, respectively.
On the downside, Shriram Finance led the losers, falling 1.86 per cent to ₹615.15, while Bharat Electronics Limited dropped 1.28 per cent to ₹377.60. Bajaj Finance declined 1.24 per cent to ₹894.00, and Hindalco shed 1.16 per cent to ₹705.90. SBI Life Insurance rounded out the top five losers with a 1.04 per cent decline to ₹1,843.60.
The market’s cautious tone reflected investor uncertainty over competing factors. While government initiatives on GST reforms have boosted sentiment, concerns about potential US tariffs under the Trump administration continue to weigh on market confidence.
“Sentiments are caught between Trump’s 50 per cent tariff on Indian goods and optimism from GST reform buzz,” noted Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. “Four supportive factors keep markets underpinned: GST rationalisation plans, unemployment at a record low 5.2 per cent, S&P’s sovereign rating upgrade to ‘BBB’ and strong odds of a Fed rate cut.”
The automotive and consumer durables sectors, which led Monday’s rally with companies like Maruti, Ashok Leyland and TVS Motor touching fresh highs, showed mixed performance in early trade. Market participants are watching whether these sectors can sustain their momentum or face profit-booking pressure.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted geopolitical developments that could influence market direction. “The White House talks indicate that there is reasonable chance of ending the war,” he said, referring to Ukraine-Russia peace negotiations. “If this happens, the secondary tariff on India for buying oil from Russia would become irrelevant. This may turn out to be a positive from the market perspective.”
Commodity markets reflected these geopolitical tensions, with crude oil futures trading lower on expectations of improved Russian supply outlook. October Brent oil futures fell 0.53 per cent to $66.25, while WTI crude declined 0.61 per cent to $62.32. On the Multi Commodity Exchange, August crude oil futures dropped 0.76 per cent to ₹5,502.
In the precious metals space, gold and silver prices hovered in tight ranges as investors balanced geopolitical developments with monetary policy expectations. “Market attention is firmly fixed on the Federal Reserve’s annual Jackson Hole symposium later this week,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd. “Fed Chair Jerome Powell is expected to provide key policy signals, with traders currently assigning an 84 per cent probability to a 25 basis point rate cut in September.”
Technical analysts suggested the market could face increased volatility due to the weekly expiry of Sensex contracts. Mandar Bhojane, Senior Technical & Derivative Analyst at Choice Equity Broking, pointed out that “on the daily chart, Nifty formed a shooting star, hinting at a possible pullback towards 24,700. However, hourly RSI shows bullish divergence, indicating strength and scope for upside.”
The foreign institutional investor sentiment showed signs of improvement, with FIIs turning buyers on August 18 after four days of selling, purchasing equities worth ₹550 crore. Domestic institutional investors remained strong buyers, purchasing shares worth ₹4,103 crore.
“With FII long-short ratio at just 8 per cent, short covering could fuel the rally,” Bhojane added, suggesting potential for further upside momentum.
Looking ahead, key catalysts this week include the Federal Reserve’s FOMC minutes scheduled for August 20 and Fed Chair Powell’s speech at the Jackson Hole symposium on August 22. These events are expected to provide crucial insights into the Fed’s monetary policy direction, which could significantly impact global risk sentiment and emerging market flows.
For the immediate term, analysts expect the Nifty to trade in the range of 24,799-25,979, with 25,000 acting as a key breakout point. Bank Nifty support levels are seen at 55,500 and 55,300, with resistance at 56,200 and 56,500.
The market’s ability to sustain above current levels will largely depend on how investors interpret the ongoing developments in GST reforms, global trade policies and central bank monetary stances in the coming sessions.
Published on August 19, 2025
