Sensex, Nifty open lower over weak global cues, FII selling
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Indian benchmark indices extended their decline on Wednesday as global risk aversion, continued foreign fund outflows, and mixed corporate earnings influenced trading sentiment.
As of 9:30 AM, the Sensex fell 168 points (0.20%) to 82,012 while the Nifty dropped 28 points (0.11%) to 25,204.
Broader markets mirrored the weakness, with the Nifty Midcap 100 down 0.18% and the Nifty Smallcap 100 declining 0.11%.
Sector performance showed divergence. Nifty Metal (up 0.83%) and Pharma (up 0.86%) emerged as top gainers, while IT (down 0.81%) and Chemicals (down 1.21%) faced significant pressure.
Market analysts identified immediate support at 25,050-25,100 and resistance at 25,350-25,400 levels.
Vikram Kasat of PL Capital noted that renewed trade concerns emerged following U.S. President Donald Trump’s threat of 200% tariffs on French wine and Champagne.
The selloff in U.S. markets coincided with geopolitical tensions after Trump renewed discussions about Greenland. “Investor risk aversion appears evident, though declining bond prices and rising yields contradict a pure flight-to-safety narrative,” Kasat observed.
Greenland’s Prime Minister Jens-Frederik Nielsen urged citizens on Tuesday to prepare for potential military scenarios while downplaying immediate risks.
Other market experts warned that implementing threatened tariffs could spark European retaliation, escalating trade tensions and further dampening market sentiment.
Asian markets showed mixed trends during early trading. China’s Shanghai Composite rose 0.36% and Shenzhen gained 1.03%. Japan’s Nikkei fell 0.56%, Hong Kong’s Hang Seng dipped 0.18%, and South Korea’s Kospi declined 0.36%.
U.S. markets closed significantly lower overnight, with the Nasdaq falling 2.39%, S&P 500 dropping 2.06%, and Dow Jones declining 1.76%.
Foreign institutional investors (FIIs) divested ₹2,938 crore in equities on January 20, while domestic institutional investors (DIIs) absorbed selling pressure with ₹3,666 crore in purchases.
(Reported via IANS)
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