Domestic equity benchmarks extended their weak momentum on Wednesday, opening lower amid subdued global cues and rising risk aversion.
The Nifty 50 opened at 25,141, down 91.50 points or 0.36 per cent, while the BSE Sensex slipped 385.82 points, or 0.47 per cent, to open at 81,794.65.
Market participants said Indian equities are mirroring global trends, which remain under pressure due to geopolitical concerns, elevated bond yields and uncertainty around US trade policies.
Ajay Bagga, Banking and Market Expert, said that Indian markets are likely to move in line with global cues in the near term.
“Indian markets are looking weak and will trend with global markets. We expect global markets to attempt a recovery and don’t think Trump will follow through on the worst-case scenarios on Greenland. However, markets are worried and are factoring in a risk-off scenario, with volatility rising as well. Indian markets lack a strong catalyst, though the USD 125 billion India–EU FTA will be a sentiment booster. US markets fell sharply on Tuesday and Asian markets are soft this morning. US yields were up as foreign investors are spooked by Trump’s weaponisation of tariffs on long-term allies in Europe,” Bagga said.
Global bond market developments also added to caution. On Tuesday, the Japanese Government Bond (JGB) Liquidity Index hit a record high, indicating growing stress in the bond market. Long-term Japanese bond yields surged, with 30- and 40-year bond yields touching new highs after rising more than 25 basis points.
The weakness was reflected across the broader market as well. The Nifty 100 fell 0.36 per cent, while the Nifty Midcap 100 declined 0.32 per cent and the Nifty Smallcap 100 slipped 0.31 per cent.
On the sectoral front, most NSE indices were trading lower. Nifty Auto dropped 0.63 per cent, Nifty FMCG declined 0.29 per cent, Nifty IT fell 0.26 per cent and Nifty PSU Bank was down 0.37 per cent. Nifty Pharma gained 0.14 per cent, while Nifty Media was also up 0.14 per cent.
Several companies are scheduled to announce their third-quarter results later in the day, including Eternal, Dr Reddy’s Laboratories, Hindustan Petroleum Corporation, Bank of India, Waaree Energies, Oracle Financial Services Software, Jindal Stainless, Tata Communications, Supreme Industries, Dalmia Bharat, KEI Industries and PNB Housing Finance.
In other Asian markets, Japan’s Nikkei 225 was down 0.44 per cent, Singapore’s Straits Times fell 0.32 per cent and Hong Kong’s Hang Seng slipped 0.08 per cent, adding to cautious sentiment. (ANI)
