Indian Markets Open Lower As Global Trade Uncertainty Weighs On Sentiment

Indian equity markets began the week on a weak note as global uncertainty and rising trade tensions dented investor sentiment.

Benchmark indices opened sharply lower on Monday, mirroring losses across major international markets.

At around 9:30 AM, the Sensex slipped 449 points, or 0.54 per cent, to trade near 83,120. The Nifty dropped 148 points, or 0.58 per cent, settling around 25,546.

Investors turned cautious after fresh signals of global trade disruption emerged from the United States.

Broader markets reflected similar pressure. The Nifty Midcap 100 declined 0.42 per cent, while the Nifty Smallcap 100 fell 0.54 per cent.

Selling pressure spread across market capitalisations, indicating broad-based risk aversion.

Sectoral performance remained largely negative. Except for FMCG stocks, all major sectoral indices traded in the red. IT, media, and oil and gas stocks led the decline, each shedding more than one per cent. Analysts attributed the fall to concerns over global demand and policy uncertainty.

Market experts identified immediate support levels for the Nifty at 25,600 and 25,450.

Resistance stood at 25,875, followed by 26,000 and 26,100. Analysts warned of heightened volatility in the near term due to geopolitical and economic risks.

Global trade concerns intensified after comments from US President Donald Trump on imposing additional tariffs on several European countries.

Analysts cautioned that if the US enforces a 10 per cent tariff from February 1 and raises it to 25 per cent from June, Europe may retaliate.

Such a move could further disrupt global trade and growth.

Asian markets mostly traded lower as investors digested weak economic data from China and fresh tariff threats from the US.

China reported its slowest economic growth in nearly three years during the fourth quarter, driven by subdued domestic demand.

In Asia, Japan’s Nikkei fell by over one per cent, while Hong Kong’s Hang Seng declined by one per cent.

China’s Shanghai index edged up marginally, and South Korea’s Kospi gained nearly one per cent.

US markets also ended lower in the previous session. The Nasdaq, S&P 500, and Dow Jones posted modest losses.

On the institutional front, foreign investors sold equities worth Rs 4,346 crore on January 16. Domestic institutions provided some support, buying shares worth Rs 3,935 crore.

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