The Indian stock markets opened in negative territory on Friday following a record-breaking session the previous day, as global economic uncertainty and impending reciprocal tariffs on April 2 weighed on investor sentiment.
The Bombay Stock Exchange (BSE) Sensex declined 69.91 points, commencing the day at 76,278.16, while the National Stock Exchange (NSE) Nifty fell 22.40 points to 23,168.25. Despite the weak start, market breadth remained mixed, with 31 Nifty companies advancing and 19 declining.
Among the leading gainers were Bajaj Finance, Nestle India, Shriram Finance, ONGC, and Maruti.
However, the IT sector bore the brunt of the decline, with major firms such as Infosys, HCL Technologies, TCS, Wipro, and Tech Mahindra registering notable losses.
Banking and marketing expert Ajay Bagga attributed the downturn to mounting concerns over economic uncertainty.
He pointed out that central banks worldwide, including those in Indonesia, Brazil, the United Kingdom, and the United States, had recently issued economic outlooks but failed to provide clarity on key risks.
"The world is flying blind into April 2 broad-based reciprocal tariffs," Bagga cautioned, adding that the prevailing market sentiment is characterised by volatility, caution, and capital preservation.
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While geopolitical risks have not reached alarming levels, Bagga noted the potential for unintended consequences.
He pointed to unsuccessful Russia-U.S. ceasefire negotiations and escalating tensions in the Middle East, particularly with renewed Israel-Hamas conflict and France’s advisory for its citizens to leave Iran.
The IT sector suffered further setbacks following Accenture’s earnings report, which raised fresh concerns about the industry's growth trajectory.
Given Accenture’s substantial exposure to U.S. government contracts, its muted outlook has triggered apprehensions about the performance of Indian IT service providers.
On a more positive note, foreign portfolio investors (FPIs) have infused capital into Indian markets in two of the past three trading sessions.
Bagga suggested that should this trend persist and domestic investors deploy sidelined capital, the markets could resume their upward momentum toward record highs.
However, he warned that the uncertainty surrounding April 2 remains difficult to gauge or hedge against, with evolving global risks continuing to unsettle investors.
"For now, we remain cautiously optimistic but very wary of surprises on April 2. Risks are being priced in, but uncertainty remains a challenge for investors in a potential 'lose-lose' trade war scenario," Bagga remarked.
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