Indian benchmark indices opened on a flat-to-negative note on Tuesday as investors remained cautious amid global trade uncertainties and continued foreign fund outflows.
At around 9:17 am, the BSE Sensex was trading at 83,224.93, down 21.25 points or 0.03 per cent, while the NSE Nifty 50 slipped 10.95 points, or 0.04 per cent, to 25,574.55. The marginal decline comes against the backdrop of persistent selling by foreign institutional investors and heightened global risk aversion.
Ponmudi R, CEO of Enrich Money, said Indian equities are expected to trade with a cautious undertone as aggressive tariff measures by the US administration continue to unsettle global markets. He added that geopolitical tensions and weakness in the rupee are weighing on investor confidence, limiting any sustained upside despite short-term recoveries.
According to Ponmudi, steady buying by domestic institutional investors remains a key stabilising factor, helping absorb selling pressure and preventing sharper declines in the market.
On the technical front, he noted that the Nifty has slipped into a short-term bearish bias after breaking below the 25,600 support level. The index is currently moving within a consolidation and corrective phase in the 25,500–26,000 range and is trading below key moving averages, indicating subdued momentum.
Immediate support for the Nifty is seen at 25,500, while increased expiry-related selling or fresh foreign investor pressure could push the index towards lower demand zones at 25,400 and 25,125. For the ongoing expiry, the outlook remains neutral to mildly bearish, with a strong close above 25,700 needed to stabilise sentiment.
Ponmudi also pointed out that Bank Nifty continues to show relative resilience compared to the broader market. While the trend remains neutral to mildly positive, a close below the 60,000 level could trigger caution. The banking index has immediate support in the 59,800–59,700 range, with resistance seen between 60,200 and 60,300.
Market participants believe that selective strength in banking stocks may continue to provide some support to headline indices, provided broader market weakness does not intensify.
Global developments remain a key focus for investors this week. Banking and market expert Ajay Bagga said trade-related actions by former US President Donald Trump are the dominant theme driving sentiment.
He also noted that Japanese bond yields are rising after Prime Minister Sanae Takaichi announced plans to dissolve parliament on Friday and call for a snap election on February 8 to seek a stronger mandate for a fiscal stimulus and sales tax cut-led economic package. Meanwhile, European leaders are scheduled to meet on Thursday to assess options related to proposed US tariffs on Greenland, set to take effect from February 1.
-ANI
