Indian stock markets opened in the red on Wednesday, extending losses from the previous session amid continued concerns over fresh 25 per cent US tariffs on countries trading with Iran, against the backdrop of rising geopolitical tensions.
Persistent foreign portfolio investor (FPI) outflows further weighed on market sentiment.
The Nifty 50 index opened at 25,648.55, down 83.75 points or 0.33 per cent, while the BSE Sensex declined 257.63 points, or 0.31 per cent, to open at 83,370.06.
Market participants remained cautious as Indian equities continued to face pressure from global uncertainties, including repeated tariff threats from the United States and heightened geopolitical risks. Sustained selling by FPIs added to the downside pressure on domestic markets.
Commenting on the outlook, Ponmudi R, CEO of Enrich Money, said Indian equity markets are likely to trade steady to mildly cautious, following a mixed close in the previous session.
“Sentiment remains guarded amid ongoing geopolitical tensions, tariff-related uncertainties, persistent FII selling, and firmer crude prices,” he said.
He added that while select Asian markets are showing pockets of strength, global cues remain mixed, with US indices ending overnight in the red.
“Overall, markets remain in a consolidation phase, characterised by selective buying at support levels and selling pressure near key resistance zones,” he added.
Selling pressure was visible across most National Stock Exchange indices, with broader market indices also opening lower. The Nifty 100 declined 0.29 per cent, the Nifty Midcap 100 slipped 0.17 per cent, while the Nifty Smallcap 100 showed relatively limited losses, down 0.07 per cent.
Sectoral performance on the NSE reflected a mixed trend in early trade. The Nifty Auto index fell 0.08 per cent, while Nifty FMCG edged up 0.06 per cent. Nifty IT declined 0.29 per cent and Nifty Media slipped 0.25 per cent. In contrast, Nifty Metal rose 0.25 per cent, and the Nifty PSU Bank index gained 0.21 per cent.
On the fund flow front, data for Tuesday showed FPIs were net sellers in the cash market, offloading shares worth Rs 1,499.81 crore. Domestic institutional investors (DIIs), however, provided some support with net buying of Rs 1,181.78 crore.
Vinod Nair, Head of Research at Geojit Investments, said domestic equities saw a downturn due to renewed concerns over potential US tariffs on countries trading with Iran, which overshadowed the initial optimism generated by positive comments from the newly appointed US ambassador regarding the trade deal.
He added that investor sentiment remained cautious amid a weaker rupee, rising crude prices, higher US bond yields, and persistent FII outflows.
Nair also noted that India’s December CPI remained within the Reserve Bank of India’s target range, supporting expectations of future rate cuts. However, the third-quarter earnings season began on a subdued note, with muted results from a leading IT company. (ANI)
