Equity Alert
Indices may rise Tue, but gains seen capped on growth concerns
This story was originally published at 08:11 IST on 2 September 2025
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Equity Alert: Indices may rise Tue, but gains seen capped on growth concerns
MUMBAI--0751 IST--Benchmark indices are likely to gain more Tuesday as market participants are expected to buy stocks after a nearly 2?ll last week. However, gains are likely to be capped amid concerns over economic growth and the impact of the US tariffs. Gains on Tuesday are expected to be modest, and investors may take the opportunity to book profits if markets rise, as indices have already rebounded slightly from last week's slump, posting 0.7–0.8% gains Monday.
The September futures contract of the GIFT Nifty suggests a positive start for the Nifty 50 Tuesday. At 0750 IST, the contract was trading at 24741.50 points, unchanged from the previous close and 0.5% higher than the Nifty 50's close Monday. Analysts expect the Nifty 50 to face resistance at 24800-24850 points while immediate support is expected at 24300-24500 points.
The stronger-than-expected GDP growth in the June quarter has raised some hope that the Indian economy may manage to top expectations on growth despite tariffs by the US. However, some analysts said the June quarter GDP growth was driven by front-loading of exports and spending by the government, and it would be difficult to maintain this growth in the coming quarters.
Cues from Asian markets were mixed, with indices in China and Hong Kong slightly down while those in Japan, South Korea, and Taiwan were up. Indices in China were down after three days of gains amid the Shanghai Cooperation Organisation summit, which concluded Monday. The summit was in focus as major world leaders, including Russia's Vladimir Putin and Indian Prime Minister Narendra Modi, attended the event in China. Equity markets in the US were closed Monday on account of Labor Day.
Foreign investors are expected to temper their flows into Indian equities, especially at a time of volatility in the rupee. On Monday, the currency hit a record intraday low of INR 88.33 a dollar and closed at INR 88.20. The falling rupee is also expected to drive away foreign investors who have already created "extreme" short positions in domestic equities, analysts said. Foreign portfolio investors, who sold shares worth INR 17 billion Monday, are expected to continue to sell Indian stocks. (Anshul Choudhary)
Equity Alert: Most Asian indices rise post selloff on Mon; Kospi top gainer
MUMBAI--0742 IST--Most Asian indices were up in early trade Tuesday as investors focused on a meeting of the Shanghai Cooperation Organisation, which will be attended by Prime Minister Narendra Modi too. Tariff-related uncertainty continues to weigh on sentiment after a US federal appeals court last week ruled that most of President Donald Trump's global tariffs were illegal. The US market was shut Monday on account of Labor Day.
South Korea's Kospi was up 0.7%, the top gainer in the region. The country's consumer price index rose 1.7% on year in August, slower than the 2.1% rise the month before. This marks its slowest year-on-year rise since November and is slightly lower than the 2% rise forecast by Reuters. Investors were bargain-hunting for semiconductor and technology stocks after a sell-off in the previous session, The Korea Herald reported. The sell-off was after reports that China's Alibaba had developed a new artificial intelligence chip. Samsung Electronics, SK Hynix, and Naver were up 1-5%.
Japan's Nikkei 225 and Topix were up 0.5% and 0.6%, respectively. Japan's 10-year government bond auction later in the day will be a gauge for investor appetite amid growing expectations of a rate hike by the Bank of Japan, NDTV Profit reported.
Following were the levels of key Asian indices at 0738 IST:
|
INDEX |
LEVEL |
CHANGE IN % |
|
CSI 300 Index |
4525.0363 |
0.03 |
|
Hang Seng Index |
25596.87 |
(-)0.08 |
|
Nikkei 225 Day |
42395.04 |
0.49 |
|
TOPIX FIRST SECTION |
3081.12 |
0.59 |
|
KOSPI |
3163.88 |
0.67 |
|
FTSE Singapore Strait Times |
4284.54 |
0.20 |
|
S&P/ASX 200 Index |
8920.90 |
(-)0.08 |
(Akash Mandal)
US$1 = INR 88.20
End
Edited by Subhojit Sarkar
All prices from National Stock Exchange, unless otherwise specified.
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