Equity markets opened on a subdued note on Wednesday, tracking weak sentiment in overseas bourses and renewed investor caution following an uptick in US inflation. Uncertainty over proposed tariffs further dampened risk appetite, prompting traders to remain on the sidelines.
The BSE Sensex declined by 103.16 points to 82,467.75 in early trade, while the NSE Nifty shed 56.75 points to stand at 25,139.05. The losses were broad-based, with key sectors witnessing mild corrections.
Among the major laggards on the Sensex were Mahindra & Mahindra, Tata Motors, Tata Steel, Eternal, Bajaj Finance and Bajaj Finserv. On the other hand, Trent, Tech Mahindra, Adani Ports and HDFC Bank managed to post early gains.
Asian markets traded mixed. Japan’s Nikkei 225, South Korea’s Kospi and China’s Shanghai Composite were in the red, while Hong Kong’s Hang Seng index bucked the trend and moved higher. US stocks ended mostly lower on Tuesday, weighed down by sticky inflation data.
"The market has been oscillating in a narrow range during the last two months. A breakout above the upper band of the range, well beyond Nifty 25,500, needs positive triggers. Such a trigger may come from an India-US trade deal with tariffs on India pegged at around 20 per cent. If this happens, can it trigger a sustained rally in the market? Unlikely. A sustained rally in the market needs earnings support," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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He added that earnings visibility remained weak. "There are no signs of a strong earnings support and earnings growth visibility. Two big segments of the market - IT services and consumption, particularly FMCG - are struggling with tepid earnings."
According to exchange data, Foreign Institutional Investors (FIIs) were net buyers on Tuesday, having purchased shares worth ₹120.47 crore.
Prashanth Tapse, Senior Vice-President (Research) at Mehta Equities Ltd, noted, "The Nifty is likely to open cautiously as traders digest sticky US inflation data and ongoing tariff threats..."
Brent crude, the global oil benchmark, rose 0.20 per cent to trade at USD 68.85 per barrel.
On Tuesday, the Sensex had gained 317.45 points, closing at 82,570.91, while the Nifty advanced by 113.50 points to settle at 25,195.80.
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