Indian equity markets opened lower on Friday, tracking weak global cues following the announcement of new tariffs by former U.S. President Donald Trump. The pharmaceutical sector bore the brunt, with the Nifty Pharma index falling 2.75 per cent.
At 9:25 AM, the Nifty 50 was down 51 points or 0.21 per cent at 24,716, while the BSE Sensex had declined 179 points or 0.22 per cent, trading at 81,005.
In the broader market, both the BSE MidCap and BSE SmallCap indices posted marginal gains of 0.05 per cent.
Among sectoral indices, Nifty FMCG stood out as the sole gainer, rising 1.46 per cent. Meanwhile, Nifty IT slipped 0.80 per cent and Nifty Metal declined 0.99 per cent, in addition to sharp selling in pharma stocks.
Within the Nifty 50 pack, Hindustan Unilever (HUL) was the top gainer, rising 4.45 per cent, followed by Tata Consumer Products, Hero MotoCorp, Maruti Suzuki, and Trent. On the losing side, Dr. Reddy’s Laboratories led with a 1.41 per cent decline, followed by Cipla, ONGC, Larsen & Toubro, and Tata Steel.
“Despite Nifty’s bounce yesterday, the index remains vulnerable unless it sustains a move above the 24,800 mark. A close above this level could potentially open the path toward 25,000. On the downside, immediate support lies at 24,600, followed by 24,500,” said Hardik Matalia, Derivatives Analyst at Choice Equity Broking.
“As elevated volatility and conflicting technical signals prevail, traders are advised to follow a cautious ‘sell-on-rise’ approach, especially when using leverage. Book partial profits during rallies and maintain tight trailing stop-losses. Fresh long positions should only be considered if the Nifty sustains above 25,000,” he added.
On July 31, former U.S. President Donald Trump signed an executive order imposing revised “reciprocal” tariffs on several countries including Syria, Laos, South Africa, and Myanmar. The new tariff rates, ranging from 10 per cent to 41 per cent, are set to take effect from August 7.
Strong earnings from U.S. tech giants Microsoft and Meta Platforms failed to lift Wall Street. The S&P 500 fell 0.37 per cent, marking its third straight day of losses. The Dow Jones Industrial Average declined 0.74 per cent, while the Nasdaq Composite remained flat with a marginal dip of 0.03 per cent.
“In the near term, markets will be influenced by tariff-related developments. Since the implementation date is August 7, affected countries still have time to negotiate for revisions. Yesterday’s market behavior indicates that investors view the 25 per cent tariff as a short-term issue,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Asian markets also opened weak. South Korea’s Kospi led the regional decline with a 2.94 per cent fall, followed by Japan’s Nikkei 225, which dropped 0.38 per cent. Shanghai Composite shed 0.10 per cent, while Hong Kong’s Hang Seng Index edged up 0.13 per cent.
On the institutional front, foreign institutional investors (FIIs) extended their selling streak for a ninth consecutive session, offloading equities worth ₹5,588 crore on July 31. In contrast, domestic institutional investors (DIIs) remained net buyers for the 19th straight session, investing ₹6,372 crore.
-IANS