Asian markets were trading higher and US indices closed firm overnight, aiding the rebound.
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Indian equity markets are likely to open on a positive note on Tuesday, despite another salvo fired by the US administration. U.S. President Donald Trump said on Monday that countries that do business with Iran will face a new 25% tariff.
“Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America,” Trump wrote on Truth Social on Monday. “This Order is final and conclusive,” he added. Though it is unclear how much it will affect India, which is already facing higher tariffs, analysts are worried about the fresh developments.
Analyst view
Sachin Neema, fund manager at Garud Investment Managers, said: “Investors took solace in reports that the US-India trade negotiations are on track, which encouraged buying in select banking and oil stocks, whereas heavy buying was seen in metal stocks, especially gold & silver.” FII fund outflows from domestic equities remain a concern, as delays in the outcome of trade talks are prompting overseas investors to trim their holdings.
Ponmudi R, CEO of Enrich Money, said Indian markets are set to open on a steady to mildly positive note, extending yesterday’s sharp rebound from intraday lows. “Global cues remain supportive, with Asian markets trading higher and U.S. indices closing firm overnight. However, the broader undertone stays cautious as volatility has picked up amid renewed tariff-related concerns and rising geopolitical tensions in the Middle East,” he said adding that Investor attention has also shifted to India Inc.’s December-quarter earnings, with the IT sector in focus after TCS and HCL Technologies reported a mixed set of quarterly results, which could drive stock-specific action during the session.
Gift Nifty at 25,915 signals a gain of about 50 points at open for Nifty.
Shriram Wealth, in a yearly outlook note, said that based on projected FY27E Nifty50 EPS of 1346 and a PE of 22x (10-year avg), it indicates a Nifty level of around 29,700 by March 2027.
“Valuations remain higher than long term averages for the broader market, although the extent of overvaluation has moderated with the sideways to negative market movement over the past 15 months. Large Cap oriented diversified strategies including Large Cap, Flexi-cap & Multi-cap along with Hybrid funds such as Balanced Advantage, Multi-asset, etc. appear better placed on risk-reward basis. Mid/Small cap allocation may be considered in a staggered manner,” it said.
Investors should also consider diversifying a portion of their portfolios (10-15%) into Global Equities to benefit from opportunities across diverse sectors, such as Tech and Healthcare.
Derivative cues
Meanwhile, derivative data at the NSE indicates a cautious outlook.
Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, said: “The derivatives landscape reflects the sideways-to-bearish bias evident in the cash market.” Call writers have aggressively added fresh positions at at-the-money and nearby strikes, effectively capping near-term upside. Meanwhile, put writers have also built positions, largely at slightly lower strikes, pointing to expectations of range-bound activity with only tactical pullbacks.
The Put-Call Ratio (PCR) has climbed to 0.87 from 0.48, reflecting heightened caution and continued dominance of call writing.
Published on January 13, 2026
