In the Nifty50 index, 32 stocks were trading in the green, while 18 stocks were in the red.

Mayuresh Joshi of Marketsmith India explains the uncertainties around Trump's tariffs, potential sectoral impacts, and the volatility they may bring to equity markets. He suggests that while industries like autos may continue to face challenges, Indian pharmaceuticals might experience some relief. Positive domestic consumption and government investments are expected to drive growth despite global pressures.

JPMorgan reduced its target price for Tata Consultancy Services (TCS) to Rs 3,900 from Rs 4,500, Infosys to Rs 1,900 from Rs 2,350, HCL Tech to Rs 1,700 from Rs 2,200, and Tata Elxsi to Rs 4,500 from Rs 5,400.

The Nifty Pharma index was trading 0.4 per cent up at 20854.8.

HUL share price: The brokerage also lowered its target price for HUL to Rs 2,330 from Rs 2,540, citing macroeconomic challenges and weak consumer demand, especially in rural India. BofA noted that pricing pressures and inflationary costs in key segments like tea and soaps could impact the company's short-term performance.

Indian markets have performed well over the past few years, yet witnessed weak participation from foreign portfolio investors (FPIs). However, there are signs of increasing FPI interest, particularly in India and China, driven by global market uncertainties and attractive valuations.

Global companies sourcing from countries like China, Mexico, and India may experience EPS pressure due to upcoming US tariffs. Despite the uncertainty, this situation may benefit India in the medium term, particularly in labor-oriented sectors. Investment confidence and diversification are recommended.

Macquarie's India Strategy report highlights six "Rising Stars" stocks with potential 2x returns in three years, including IRCTC, AB Capital, and Uno Minda. It also lists six long-term "Star" stocks like TCS and HDFC Bank and six tactical short-term picks, including Reliance Industries and Tata Motors.