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Domestic stock markets opened in the red on Wednesday, extending selling pressure from the previous trading session amid continued concerns over new 25 per cent US tariffs on countries engaged in trade with Iran amid rising geopolitical tensions in the country.
Persistent foreign portfolio investor (FPI) outflows also 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 opened at 83,370.06, registering a decline of 257.63 points or 0.31 per cent. Market participants remained cautious as Indian equities continued to face pressure from global uncertainties, including the United States' continuous tariff threats and heightened geopolitical risks. Selling by FPIs has further added downside pressure to domestic markets. Commenting on the market outlook, Ponmudi R, CEO of Enrich Money, said, "Indian equity markets are likely to trade steady to mildly cautious today, 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 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 resistances," he said. Selling pressure was evident across most National Stock Exchange indices, with broader market indices also opening lower. The Nifty 100 index declined by 0.29 per cent, while the Nifty Midcap 100 slipped 0.17 per cent. The Nifty Smallcap 100 showed relatively limited losses, down 0.07 per cent. Sectoral performance on the NSE reflected a mixed trend during the opening session. The Nifty Auto index was down 0.08 per cent, while the Nifty FMCG gained 0.06 per cent. Nifty IT lost 0.29 per cent, and Nifty Media declined 0.25 per cent. In contrast, Nifty Metal rose 0.25 per cent, while the Nifty PSU Bank index was up 0.21 per cent. On the fund flow front, data for Tuesday showed FPIs as net sellers in the cash market, offloading shares worth Rs 1,499.81 crore, while domestic institutional investors (DIIs) provided some support with net buying of Rs 1,181.78 crore. Vinod Nair, Head of Research at Geojit Investments, said, "Domestic equities experienced a downturn due to renewed concerns about potential U.S. tariffs on countries trading with Iran, overshadowing the initial optimism from the newly appointed U.S. ambassador's positive statements on the trade deal." He added that investor sentiment remained cautious amid the rupee's weakness, rising crude prices, higher US bond yields and persistent FII outflows. Nair also noted that India's December CPI remained within the RBI's target range, supporting expectations of future rate cuts, though the Q3 earnings season began on a subdued note with muted results from a leading IT major. (ANI)
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