Indian Markets Open in Red as Global Trade Concerns Weigh on Sentiment
Indian benchmark indices opened lower on Wednesday, reflecting cautious investor sentiment amid mixed global cues and renewed selling pressure in IT, PSU banking, and financial service stocks.
As of 9:34 am, the BSE Sensex was trading 181.63 points lower at 83,530.88, down 0.22%, while the NSE Nifty 50 slipped 44.25 points or 0.17% to 25,478.25.
“After a flat-to-negative start, Nifty is likely to find support at 25,500, followed by 25,400 and 25,300. On the upside, 25,600 will act as immediate resistance, with further hurdles at 25,700 and 25,800,” said Hardik Matalia, technical analyst at Choice Broking.
Global Trade Tensions Cast a Shadow
Market participants are closely watching international developments, especially after former US President Donald Trump proposed hefty tariffs—up to 200% on pharmaceuticals and 50% on copper products. While copper futures surged over 17% on the news before retreating, analysts say the copper tariffs appear more imminent, whereas the drug-related levies might take longer to materialize.
“Markets are currently discounting noise around tariffs and awaiting more definitive signals on the trade front,” noted Vikram Kasat, Head of Advisory at PL Capital.
Sectoral and Broader Market Trends
The Nifty Bank index dropped 196.25 points or 0.34% to 57,060.05 in early trade. However, broader markets showed resilience. The Nifty Midcap 100 rose by 72 points (0.12%) to 59,487.45, while the Nifty Smallcap 100 added 84.55 points (0.45%) to reach 18,979.75.
Top Movers
Within the Sensex pack, major laggards included HCL Tech, Infosys, Tata Steel, L&T, ICICI Bank, Tata Motors, UltraTech Cement, M&M, Eternal, and Trent. On the gaining side, Hindustan Unilever, Bajaj Finance, Maruti Suzuki, NTPC, and Power Grid posted early advances.
Institutional Activity
Foreign Institutional Investors (FIIs) offloaded equities worth ₹26.12 crore on July 8, while Domestic Institutional Investors (DIIs) were net buyers to the tune of ₹1,366.82 crore, suggesting continued domestic confidence despite foreign outflows.
Asian and US Market Snapshot
In Asia, Bangkok and Hong Kong traded in the red, while Japan, Seoul, China, and Jakarta showed positive trends.
In the previous US session, the Dow Jones closed at 44,240.76, down 165.60 points (0.37%). The S&P 500 slipped marginally by 4.46 points (0.07%) to 6,225.52, while the Nasdaq inched up 5.95 points (0.03%) to 20,418.46.
As global cues continue to influence investor behavior, Indian markets may remain volatile in the near term, with traders keeping a close watch on upcoming inflation data, corporate earnings, and geopolitical developments.
