Mumbai, February 12: Indian stock markets opened on a weak note on Wednesday as investor sentiment remained cautious due to renewed tariff threats from former U.S. President Donald Trump.
The Nifty 50 and Sensex began the session with marginal losses, falling 0.1% each. The Nifty opened at 23,050, while the Sensex started at 76,188.
By 9:31 AM, the Sensex had dropped 364.21 points or 0.48%, trading at 75,929.39, while the Nifty declined 118 points or 0.52% to 22,953.80.
Market Movers and Sectoral Performance
The top drags on the Nifty included Reliance Industries, ITC, and HDFC Bank, while Nifty Metal and Nifty IT posted gains. However, Nifty Realty and Nifty Auto saw the biggest declines in early trade.
Meanwhile, the rupee opened 39 paise stronger at 86.44 against the U.S. dollar, compared to Tuesday’s closing of 86.83.
Expert Take
Market analysts pointed out that Trump’s latest tariff-related statements have rattled investors, extending the market downturn over the past several days.
“Dalal Street is gripped by pessimism as investors fear further declines if Nifty slips below the crucial 23,000 mark. The index has already lost 2.42% this year and remains 12% below its all-time high from September 2024,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
A broad-based sell-off continues to weigh on sentiment, with multiple sectors facing losses for consecutive sessions.
“Sustained weakness across major sectors has created a challenging investment environment, necessitating a careful reassessment of market conditions and individual strategies,” said Sameet Chavan, Head of Research (Technical and Derivative), Angel One.
Experts also advised investors to closely monitor global economic developments and geopolitical risks before making major investment decisions.
Institutional Activity
Foreign Institutional Investors (FIIs) remained net sellers on February 11, offloading equities worth Rs 4,486 crore, while Domestic Institutional Investors (DIIs) attempted to stabilize the market, buying equities worth Rs 4,001 crore.
According to Aakash Shah from Choice Broking, these institutional flows will be crucial in determining market trends in the coming sessions.
Global Market Trends
Elsewhere in Asia, South Korean stocks traded slightly higher as institutional investors stepped in, despite concerns about the potential economic impact of Trump’s proposed tariffs.
As the market navigates these uncertainties, investors are advised to stay vigilant, monitor global cues, and adopt a strategic approach to their portfolios.( With inputs from IANS)