SBI Securities warns that rising US-China trade tensions could add volatility to Indian equities, though domestic defense and infrastructure stocks remain resilient. The advisory outlines opportunities and risks for traders heading into the next week.
Is Nifty at Risk Due to US-China Trade Tensions, Warns SBI Securities?
According to SBI Securities, India’s Nifty 50 index may face short-term headwinds as US-China tariff discussions intensify. The report cites potential global supply chain disruptions, which could temporarily pressure sentiment in export-linked industries such as IT and metals.
Why Are Bharat Electronics and L&T in Focus? Bharat Electronics and Larsen & Toubro have delivered decisive technical breakouts, suggesting strong buying momentum. SBI Securities expects both counters to benefit from continued government spending in defense and infrastructure, with healthy order books supporting sustained earnings growth.
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How Strong Is Bank Nifty’s Momentum? Bank Nifty has sustained a bullish structure, with analysts eyeing retests of 57,200 and 58,000 levels. Strong quarterly results from private lenders, steady credit demand, and robust asset quality continue to support the uptrend despite external volatility.
The report also highlights that public sector banks are showing steady improvement in profitability metrics. Institutional buying remains focused on large-cap names, while select midcaps may outperform due to attractive valuations and strong balance sheets.
What Are the Key Risks for Nifty Traders? If US-China trade negotiations deteriorate further, global risk-off sentiment could pull the Nifty below its crucial supports. SBI Securities suggests maintaining disciplined stop-loss levels and considering protective hedges through index options to manage downside exposure.
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Despite near-term volatility, analysts remain optimistic about India’s macro strength. Domestic capex, defense procurement, and infrastructure push are expected to cushion the economy against external shocks.
Investor Takeaway: Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, notes that while global trade uncertainties could jolt markets, India’s structural fundamentals remain intact. He advises staying diversified and accumulating quality names during market dips.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment adviser before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
