Tue Feb 04 02:59:14 UTC 2025: ## Indian Markets Dip Despite Positive Asian and US Recovery

**Mumbai, February 4, 2025** – Indian markets experienced a downturn today, with the benchmark Sensex falling 319 points to close at 77,187 and the Nifty dropping 121 points to 23,361. The broader market weakness was particularly evident in mid-cap stocks, with the Nifty Midcap index plummeting 497 points to 52,989, and the Nifty Bank index declining 296 points to 49,211.

Despite the negative domestic performance, Asian markets saw gains, rising between 0.5% and 1.2% following tariff relief announcements from the US. Australia, Japan, and South Korea all benefited from the news. The US dollar also saw a slight pullback against the Yuan, improving the outlook for the Indian Rupee.

Analysts remain cautiously optimistic, predicting a potential upside bounce in the near future. However, several factors contributed to today’s decline. High levels of FII net shorts (1.84 lakh contracts), the highest since March 2023, indicate significant bearish sentiment. Options data points to key resistance levels at 23,632 for the Nifty and 50,009 for the Bank Nifty. Support levels are anticipated at 23,110 and 48,671 respectively.

The negative trend in India contrasts with a partial recovery in US markets. While the Dow Jones and S&P 500 ended lower, they recovered significantly from their intraday lows. The Nasdaq, however, remained down over 1%. The overnight roller coaster ride followed announcements regarding Trump-era tariffs, with Mexico and Canada receiving delays on tariff implementation. Further developments are anticipated following talks between Trump and China’s Xi Jinping.

Earnings reports for key capital goods stocks, including KEC International, Power Grid, GRSE, and Titagarh Rail, also influenced market sentiment. Titagarh Rail’s announcement of expansion into shipbuilding and signaling systems failed to offset broader market anxieties. The GIFT Nifty’s premium suggests a positive opening for tomorrow’s trading.

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