Indian Equities Open Lower As Trade Tensions Pressure Markets

Indian equity markets continued their downward trajectory on Tuesday, weighed down by weak global cues and escalating trade tensions between the United States and European nations.

Persistent selling by foreign institutional investors (FIIs) further dampened market sentiment.

At the opening bell, the Sensex fell 275 points, or 0.33 per cent, to 82,971, while the Nifty dropped 91 points, or 0.36 per cent, to 25,494.

Broad-market indices mirrored the trend, with the Nifty Midcap 100 declining 0.33 per cent and the Nifty Smallcap 100 easing 0.54 per cent.

Among sectors, PSU banks emerged as the top performers, gaining 1.05 per cent.

In contrast, realty and IT stocks led the losses, falling 1.18 per cent and 0.65 per cent, respectively. Other indices, including those for metals and FMCG, traded in mixed territory.

Key Technical Levels to Watch

Analysts indicated immediate support for the Nifty lies in the 25,400–25,450 zone, while resistance is pegged around 25,700–25,750.

“Uncertainty will persist until clarity emerges on the US-Europe standoff over Greenland tariffs. A Supreme Court ruling on President Trump’s tariffs is expected to provide fresh direction,” noted a market strategist.

Despite market volatility, the International Monetary Fund (IMF) has raised India’s FY26 GDP growth forecast to 7.3 per cent, signalling the economy’s resilience amid headwinds.

Analysts also expect Q3 corporate earnings, especially from the auto sector, to offer insights into the recovery in growth momentum.

Asian markets largely traded lower during Tuesday’s morning session. China’s Shanghai index slipped 0.3 per cent, Shenzhen fell 1.22 per cent, and Japan’s Nikkei declined 1.03 per cent.

Hong Kong’s Hang Seng eased 0.09 per cent, while South Korea’s Kospi gained 0.13 per cent.

The US markets ended lower in the previous session, with Nasdaq down 0.06 per cent, S&P 500 off 0.06 per cent, and the Dow retreating 0.17 per cent.

On January 19, FIIs sold net equities worth ₹3,263 crore, while domestic institutional investors (DIIs) purchased equities totalling ₹4,234 crore.

Market watchers cautioned that near-term trading is likely to remain volatile as investors monitor global trade developments and domestic corporate results.

Also Read: Sensex, Nifty End Lower As Earnings Pressure Weighs On Markets