The Indian benchmark indices opened lower as the Sensex opened trade at 84,894.03 or lower by 319 points and the Nifty tested 26,000 down by 96 points at 9:15 AM.
In the pre-open session the Sensex traded at 85,085 or more than 127 points lower, Nifty 25,952 or 75 points lower.
The Gift Nifty was trading at 25,999.50 or 84 points lower, 8:42 AM.
The BSE Sensex settled trading a little above 85,200, falling more than 50 points, while the NSE Nifty50 ended the session near 26k, taking a hit of 20 points on Monday in the closing session.
Trade Deal Uncertainty Weighs On Markets
Analysts said lingering uncertainty over an India–US trade agreement continues to act as a key overhang for domestic markets. The absence of clarity, they noted, is affecting export momentum and putting pressure on the rupee.
“A major drag on the market continues to be the elusive US-India trade deal, which is impacting India’s exports to the US, widening the trade deficit and contributing to the ongoing depreciation of the rupee,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
WPI Inflation Shows Signs Of Stabilisation
India’s Wholesale Price Index (WPI) data for November, released on Monday, pointed to early signs of stabilisation after months of sharp declines. Wholesale inflation rose to minus 0.32 per cent from minus 1.21 per cent in October, marking a recovery from a year-low print.
While wholesale prices remain in deflationary territory, the data suggests that the steep price corrections witnessed earlier in the year are beginning to ease, particularly in food items.
Food Prices Still Soft, But Deflation Eases
Food articles continued to exert downward pressure on the index, though the intensity of deflation moderated noticeably. Vegetable prices, despite remaining more than 20 per cent lower than a year ago, improved significantly compared with October’s sharp declines, indicating that supply-side pressures are gradually normalising.
Prices of cereals and pulses also remained soft, reflecting improved availability and easing procurement pressures.
Non-food components provided some relief to the overall index. Oilseeds inflation rose sharply on the back of supply constraints and firm global cues, while mineral prices strengthened amid construction-related demand.
Fuel and power inflation remained in negative territory but showed signs of stabilisation, tracking movements in global energy prices.
Manufactured Products Remain Subdued
Manufactured products, which carry the highest weight in the WPI basket, continued to see muted price pressures. This underscored the absence of strong cost-push inflation across the industrial sector.
Overall, the November WPI data suggests that wholesale deflation may be approaching its end, reinforcing the assessment that inflationary risks remain well contained for now.
