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Indian Stocks Defy Cautious Sentiment, Post Gains
5 Aug
Summary
- Sensex and Nifty 50 indices close higher despite US tariff threats
- Broader market sees buying across sectors, Nifty 50 above 24,700
- US markets rally overnight, providing positive global cues
As of August 5, 2025, the Indian stock market is expected to open on a cautious note, with the Sensex and Nifty 50 indices likely to see muted trading. This comes as investors remain wary of the potential impact of US President Donald Trump's threats to impose higher tariffs on India.
However, the domestic equity market had a strong performance on the previous trading day, August 4, 2025. The Sensex gained 418.81 points, or 0.52%, to close at 81,018.72, while the Nifty 50 settled 157.40 points, or 0.64%, higher at 24,722.75. The broader market saw buying across sectors, with the Nifty 50 closing above the 24,700 level.
Analysts at Religare Broking noted that there continues to be ample trading opportunities across various sectors, advising investors to focus on effective stock selection and trade management. The positive sentiment was also bolstered by strong cues from global markets, as the US stock market rallied overnight, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posting significant gains.
Despite the cautious outlook, the Indian market's resilience in the face of trade tensions suggests that investors remain optimistic about the country's long-term growth prospects.
