Indian Markets Brace for Flat Opening Amid US Tariff Concerns

Domestic equities are poised for a muted start as investors weigh impending US tariffs on Indian goods, set to take effect midweek. Market participation remains thin ahead of the Ganesh Chathurthi holiday, with analysts characterizing the session as directionless.

Structural tailwinds may override near-term headwinds. Emkay Global highlights GST rationalization as a potential catalyst for domestic consumption stocks, suggesting tariff impacts could prove transient. "The earnings cycle is bottoming," the firm notes, projecting monetary and fiscal stimulus to fuel a consumption rebound in late FY26.

Derivatives markets reflect caution, with call writers actively capping upside. While elevated valuations warrant monitoring, robust domestic flows continue counterbalancing foreign outflows. Any material correction should be viewed as an entry point, particularly in discretionary sectors.