Indian equity markets opened on a positive note but quickly surrendered early gains, with both benchmark indices turning red within minutes of the opening bell. Investor sentiment remained cautious as markets awaited a crucial US Supreme Court ruling on the legality of tariffs that have weighed on trading sessions recently.

Market Performance

The key indices showed mixed opening but deteriorated as trading progressed:

Both indices had opened higher, briefly snapping a four-session losing streak before turning negative around 9:27 a.m. The Sensex and Nifty have declined 1.80% and 1.70% respectively over the past four sessions.

Stock-Specific Movements

Among the 30-stock Sensex constituents, the session saw clear divergence between sectors:

Top Decliners:

• ICICI Bank
• Adani Ports
• NTPC
• Sun Pharma
• UltraTech Cement

These stocks fell between 0.50% and 1.50% during the session.

Top Gainers:

• Eternal (leading gains)
• Bharat Electronics
• HCL Technologies
• Asian Paints
• Power Grid

The gainers rose between 1.00% and 2.00%. Mazagon Dock Shipbuilders climbed 3.00% following reports of India and Germany moving closer to finalizing a submarine-manufacturing agreement valued at least $8.00 billion.

Broader Market Trends

Broader market indices remained under pressure, reflecting the cautious sentiment across market segments:

Institutional Activity

Foreign and domestic institutional investors showed contrasting behavior:

Currency Movement

The Indian rupee opened at 89.87 against the US dollar, gaining 0.16% from its previous close. The dollar index tracked at 98.92, hovering near a one-month high.

Global Market Context

Asian markets showed mixed performance as investors awaited key developments. Japan's Nikkei rose 0.80%, supported by strong earnings from Fast Retailing. MSCI's broad Asia-Pacific index outside Japan slipped 0.30% in early trading. Oil prices advanced for the second straight session, with Brent crude futures rising 0.70% to $62.43 per barrel and US West Texas Intermediate crude climbing 0.70% to $58.15.

Indian stock markets are positioned for a marginal recovery on Friday after experiencing four consecutive sessions of losses driven by renewed US tariff concerns. The Gift Nifty futures were trading at 25,998.50 points as of 8:02 a.m. IST, signaling that the Nifty 50 would open above Thursday's close of 25,876.85.

Market Performance and Tariff Impact

The recent market decline has been significant, with both major indices posting notable losses over the past four trading sessions.

The sell-off was triggered by US President Trump's hints at further raising tariffs on Indian goods, citing concerns over New Delhi's purchase of Russian crude oil. The US has already imposed tariffs of up to 50% on imports from India, which is the world's second-largest buyer of Russian oil. This comes as New Delhi seeks to finalize a long-awaited trade deal with Washington.

Supreme Court Ruling Awaited

Investors are closely watching for a US Supreme Court ruling on the legality of Trump's tariffs. If the court deems these tariffs "illegal," the US government could be forced to refund nearly $150.00 billion to importers, potentially providing significant relief to affected markets and companies.

Foreign Investment Outflows Continue

Foreign portfolio investors have maintained their selling pressure on Indian equities, offloading approximately $900.00 million worth of Indian shares in January. This continues the trend from 2025, which saw record outflows of $19.00 billion from Indian markets.

Major Corporate Developments

Several significant corporate announcements are drawing investor attention:

Bajaj Group Insurance Deal

Bajaj Finserve announced that Bajaj Group has acquired a 23% stake in its insurance subsidiaries from Allianz SE for ₹213.90 billion.

Infrastructure and Healthcare Wins

BHEL secured a substantial order worth ₹54.00 billion from JV Bharat Coal Gasification & Chemicals, strengthening its order book in the energy sector.

Venus Remedies received marketing authorization in Indonesia for its antibiotic combination Ceftazidime and Avibactam, expanding its international presence in the pharmaceutical market.

Energy Sector Developments

Reliance Industries, which operates the world's largest refining complex, indicated it will consider buying Venezuelan oil if sales are permitted to non-US buyers, potentially diversifying its crude oil sourcing strategy.

Market Outlook

Analysts suggest that the benchmarks could find support after the sustained four-session decline, with buying interest expected around current levels. However, market experts emphasize that a resolution of trade uncertainty and strength in domestic corporate earnings remain crucial factors for any sustained upward movement in the indices.