Indian equity markets opened higher for the second consecutive session on Tuesday, brushing aside fresh geopolitical concerns after US President Donald Trump announced a new 25 per cent tariff on countries trading with Iran.
Both benchmark indices showed resilience in early trade, supported by gains in select heavyweights and a positive global market mood.
Benchmarks Open in the Green
At 9:16 am, the BSE Sensex was up 289.07 points, or 0.34 per cent, at 84,167.24, after climbing nearly 397 points at the opening bell. The NSE Nifty advanced 56.35 points, or 0.22 per cent, to 25,846.60, having briefly touched an intraday high of 25,899.80.
Limited Trade Exposure Cushions India
Commenting on the potential impact of the tariff announcement, Radhika Rao, Executive Director and Senior Economist at DBS Bank, noted that India’s trade exposure to Iran has diminished sharply in recent years.
She said total goods trade with Iran has fallen to less than 0.5 per cent since 2018–19, following wider global sanctions. India’s exports to Iran largely include cereals, coffee, pharmaceuticals, fruits, and nuclear reactors, while imports consist mainly of mineral fuels, edible fruits, glass, and cement-related products.
Rao added that clarity on the implementation timeline of the tariff would be crucial, particularly to assess whether it becomes an additional layer of restriction or allows scope for trade adjustments.
Tariffs, Geopolitics, and Market Uncertainty
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the increasing use of tariffs as a policy tool has already disrupted global trade flows.
He said the latest announcement reinforces concerns over policy unpredictability, noting that tariff actions and domestic pressure tactics in the US could continue to unsettle markets. From an Indian perspective, Vijayakumar pointed out that optimism returned on Monday after Sergio Gor stated that the US was keen to finalise a trade agreement with India, with discussions expected to resume as early as January 13.
Stocks in Focus
Among Sensex constituents, Eternal led the gains, rising 3.72 per cent to ₹295.85. HDFC Bank advanced 0.94 per cent, while Bharat Electronics, Tech Mahindra, and State Bank of India posted gains of 0.71 per cent, 0.64 per cent, and 0.61 per cent, respectively.
Global Markets Offer Support
Overnight cues from the US were positive. Dow Jones Industrial Average ended 0.17 per cent higher at 49,590.20, while the S&P 500 gained 0.16 per cent to close at 6,977.27. The Nasdaq Composite added 0.26 per cent to finish at 23,733.90.
Asian markets also traded in positive territory, with Japan’s Nikkei 225 surging 3.08 per cent, South Korea’s Kospi rising 0.46 per cent, and Hong Kong’s Hang Seng Index gaining 1.12 per cent.
Previous Session Recap
On Monday, the Sensex closed 301.93 points, or 0.36 per cent, higher at 83,878.17, while the Nifty added 106.95 points, or 0.42 per cent, to settle at 25,790.25.
Market participants are expected to remain cautious in the near term, with geopolitical developments and policy signals from the US continuing to shape investor sentiment.
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