Sensex, Nifty slip as global cues turn weak

Indian equity markets closed lower on Monday, ending a two-day rally as global uncertainties dampened investor confidence.

The benchmark Sensex dropped 173.77 points (0.21%) to settle at 82,327.05, while the Nifty fell 58 points (0.23%) to close at 25,227.35.

Technical analysts observed that the Nifty’s position above the key 25,000 support level maintains a positive outlook, suggesting potential movement toward the 25,500 resistance threshold.

Market sentiment worsened following former US President Donald Trump’s remarks about implementing strict tariffs against China, reigniting concerns about renewed trade conflicts. Despite subsequent moderation in Trump’s statements, caution prevailed among investors.

Major Sensex decliners included Tata Motors, Infosys, Hindustan Unilever, and Power Grid. Conversely, Adani Ports, Bajaj Finance, Bajaj Finserv, and Axis Bank provided some support, minimizing broader index losses.

Sectoral performance showed weakness in IT and consumer goods stocks, with the Nifty IT and FMCG indices falling 0.78% and 0.9% respectively. Financial services outperformed, with the sector index rising 0.35%.

Broader markets displayed mixed results – the MidCap 100 index edged up 0.11% while the SmallCap 100 declined 0.17%.

Market experts anticipate continued volatility due to persisting global trade tensions and geopolitical factors. They noted the cautious start followed concerns about the US government shutdown and escalating trade friction between Washington and Beijing.

Recent profit-taking in consumer-focused sectors after strong rallies signaled strategic repositioning by investors. A modest rupee recovery and easing inflation projections provided some stability, though overall sentiment remained subdued throughout the trading session.

(With inputs from IANS)