Indian Markets Open Lower On Global Trade Uncertainty

The Indian stock market opened lower on Wednesday, weighed down by mixed global cues and sectoral weakness.

IT, public sector banks, and financial services led the declines as global trade uncertainties dampened investor sentiment.

As of 9:34 AM IST, the Sensex was down 181.63 points or 0.22% at 83,530.88, while the Nifty slipped 44.25 points or 0.17% to 25,478.25.

Market analysts suggest that while the broader trend remains cautious, there are clear technical support and resistance levels in play.

“After a flat to negative opening, Nifty can find support at 25,500, followed by 25,400 and 25,300. On the upside, resistance lies at 25,600, 25,700, and 25,800,” said Hardik Matalia of Choice Broking.

Global trade tensions influence sentiment

Investor mood continues to be affected by evolving trade tensions.

Recent remarks from US President Donald Trump calling for steep tariffs – 200% on pharmaceuticals and 50% on copper products – caused fluctuations in commodity markets. Copper futures spiked over 17% before retracing slightly.

“While the copper tariffs appear more likely in the near term, Trump’s comments on drug tariffs seem to be longer-term posturing,” said Vikram Kasat, Head of Advisory at PL Capital.

The Nifty Bank index dropped 196.25 points or 0.34% to 57,060.05 in early trading.

Conversely, broader market indices were more resilient, with the Nifty Midcap 100 gaining 72 points or 0.12% to 59,487.45, and the Nifty Smallcap 100 rising 84.55 points or 0.45% to 18,979.75.

In the Sensex pack, key laggards included HCL Tech, Infosys, Tata Steel, L&T, ICICI Bank, Tata Motors, UltraTech Cement, and M&M.

On the other hand, Hindustan Unilever, Bajaj Finance, Maruti Suzuki, NTPC, and Power Grid were among the top gainers.

On July 8, foreign institutional investors (FIIs) sold equities worth ₹26.12 crore, whereas domestic institutional investors (DIIs) bought ₹1,366.82 crore worth of equities, showcasing ongoing domestic buying support amid FII outflows.

Asian markets showed mixed trends as investors sold in Bangkok and Hong Kong, while buyers kept Japan, Seoul, China, and Jakarta in positive territory.

In the US, the Dow Jones Industrial Average closed at 44,240.76, down 165.60 points or 0.37%, while the S&P 500 edged down 0.07%. The Nasdaq saw a marginal gain of 0.03%.

Market participants remain cautious, with global trade developments and earnings season likely to dictate near-term trends.

Traders are advised to stay alert to technical levels and sectoral shifts as clarity emerges on the geopolitical and economic fronts.

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