Indian equity benchmarks opened the new week on a weak note on Monday, weighed down by negative global cues as fresh geopolitical trade tensions rattled investor sentiment following signals of additional tariffs from the US administration on European countries.
The BSE Sensex settled the session near 83,250, crashing more than 300 points, while the NSE Nifty50 clocked a loss of over 100 points to close above 25,550, as of 3:30 PM today.
On the Sensex, IndiGo, Tech M, HUL, Kotak Mahindra Bank, and Maruti settled among the gainers. Meanwhile, the laggards included Reliance, ICICI Bank, Eternal, Titan, and Adani Ports.
In the broader markets, the Nifty Microcap 250 and Smallcap 250 indices bled 1.34 per cent and 1.13 per cent respectively. Sectorally, the Realty and Media indices dominated in red and crashed 1.99 per cent and 1.84 per cent respectively. On the other hand, the FMCG and Auto indices stood out among the few in green and rose 0.67 per cent and 0.13 per cent respectively.
Notably, in early trade at around 9.30 AM, the 30-share Sensex was down 449 points, or 0.54 per cent, at 83,120, while the NSE Nifty slipped 148 points, or 0.58 per cent, to 25,546. The broader market mirrored the weakness seen in the frontline indices.
Market participants flagged key technical levels for the day, with immediate support seen at the 25,600 and 25,450 zones on the Nifty. On the upside, resistance was pegged at 25,875, followed by 26,000 and 26,100, according to market watchers.
Trade tensions and tariff fears weigh on sentiment
Analysts warned that volatility could persist in the near term amid heightened geopolitical risks and uncertainty surrounding global trade. Concerns intensified after remarks from US President Donald Trump about imposing additional tariffs on European countries.
Market experts said that if President Trump proceeds with a 10 per cent tariff on eight European nations from February 1 and subsequently raises it to 25 per cent from June 1, retaliation from the European bloc would be almost inevitable. Such a move could further disrupt international trade flows and weigh on global economic growth, they added.
Global Markets
US equities ended in the red in the previous session, with the Nasdaq slipping 0.06 per cent. The S&P 500 also declined 0.06 per cent, while the Dow Jones Industrial Average lost 0.17 per cent.
Back home, institutional activity remained a key focus area for investors. On January 16, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 4,346 crore. Domestic Institutional Investors (DIIs), however, provided some support to the market, buying shares worth Rs 3,935 crore, according to exchange data.
