Rally In Indian Markets, Nifty Up 0.6% And Sensex Jumps 500 Pts In Opening But Tariff Concerns Persist: Experts

Indian stock markets opened with gains on Monday, tracking positive momentum from other Asian markets, even as concerns related to tariffs continued to weigh on overall market sentiment. 

The Nifty 50 index opened at 26,055.85, registering a gain of 89.45 points or 0.34 per cent. 

The BSE Sensex also started the session on a positive note, opening at 85,139.93, up by 210.57 points or 0.25 per cent. 

Market experts, however, cautioned that pressure remains on Indian equities due to tariff-related concerns. 

Ajay Bagga, Banking and Market Expert, told ANI that Indian markets had ended lower for the third consecutive week on Friday, but several positive factors are now supporting the opening sentiment. 

"Indian markets marked a down week for the third consecutive week on Friday. However, the soft US CPI and the positive cues from US and Asia are pointing to a gap up open this morning. We have seen positive flows from FPIs last week, the recovery in the Rupee and the oversold levels of Indian markets are all pointing to a better start to the week," Bagga said. 

Despite the positive opening, issues that have affected Indian markets throughout the year continue to persist. According to Bagga, the biggest sentiment dampener remains the 50 per cent US tariffs and the lack of any conclusive move towards finalising a trade deal. 

Foreign Portfolio Investor (FPI) selling has continued during the year, adding pressure to the markets. Liquidity has also moved out of Indian equities as promoters and private equity funds rushed to encash high valuations available in the primary markets. In the broader market on the National Stock Exchange, key indices traded higher. 

The Nifty 100 gained 0.54 per cent, while the Nifty Midcap 100 rose by 0.51 per cent. The Nifty Smallcap 100 also advanced by 0.49 per cent, indicating broad-based buying interest. 

Sectoral indices on the National Stock Exchange also showed strength in early trade. Nifty Auto was up by 0.34 per cent, while Nifty Metal gained more than 1 per cent. Nifty Pharma surged by 0.46 per cent and Nifty IT rose by more than 1 per cent. Global cues remained supportive. 

US markets witnessed a dip in buying in the tech and artificial intelligence sectors on Friday, which rekindled hopes of a Santa rally globally. 

The US Consumer Price Index data, which was delayed due to the October US government shutdown, came in softer than estimates for both headline and core inflation. 

This boosted market expectations of further rate cuts by the US Federal Reserve in early 2026. Meanwhile, oil prices were trading higher on Monday morning amid developments related to the US and Venezuela. 

Precious metals were also trading firm in Asian markets, with silver hitting yet another all-time high. Other Asian markets traded strongly, with Japan's Nikkei 225 gaining more than 1.9 per cent, Taiwan's weighted index surging by 1.68 per cent, and South Korea's KOSPI rising by 1.7 per cent, providing additional support to domestic market sentiment.

Also Read: Rupee Set To Slip On Monday; Can RBI Sustain Last Week's Record Gains?