Mumbai: Indian equity indices opened lower on Wednesday, following a negative trend from global markets, as concerns over US-China trade tensions deepened. President Donald Trump’s threats to impose reciprocal tariffs on the global pharmaceutical sector heightened uncertainty, affecting investor sentiment.
Sensex and Nifty Performance
Ahead of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting, where a 25 basis point repo rate cut is anticipated, the Sensex dropped by 302 points or 0.41 per cent, settling at 73,939. Similarly, the Nifty fell by 107 points or 0.48 per cent, at 22,433 in the early trade. Broad market indicators also followed a negative trend, with mid and small caps seeing declines. The Nifty midcap 100 index was down by 436 points (0.87%) at 49,402, while the Nifty small cap 100 index fell by 150 points (0.98%) to 15,238.
Sectoral and Stock Movements
On the sectoral front, auto, FMCG, and consumption sectors were among the top gainers. However, IT, PSU Bank, pharma, metal, realty, infra, and commodities saw significant declines. In the Sensex pack, stocks like Power Grid, Nestle, HUL, M&M, ITC, Asian Paints, and Bharti Airtel performed well, while Maruti Suzuki, Bajaj Finserv, Tata Steel, Tech Mahindra, Infosys, HCL Tech, and TCS were among the major losers.
Global Market Influence
Selling pressure was observed in major Asian markets, with Tokyo, Hong Kong, and Seoul trading in the red. The US market also closed lower on Tuesday amid recession concerns, exacerbated by Trump's announcement of a 50% tariff on Chinese imports. These actions add to fears of a potential global recession, shaking investor confidence.
Market Outlook
Devarsh Vakil, Head of Prime Research at HDFC Securities, warned that the markets may remain volatile due to these global uncertainties and the upcoming derivative expiry.
