Markets Tread Carefully As Tariff War Intensifies, Sensex, Nifty Open In Red

On Monday, the GIFT Nifty stood at 25,195.5, inching up merely 4 points, as of 9 AM. In the pre-open session, both benchmarks Sensex and Nifty, traded in opposite directions.

Market sentiment this week will be shaped by a mix of corporate results and international economic data.

Source : ABPLIVE AI

The Indian markets indicated more volatility in store for investors this week. On Monday, the GIFT Nifty stood at 25,195.5, inching up merely 4 points, as of 9 AM. 
In the pre-open session, both benchmarks Sensex and Nifty, traded in opposite directions. As of 9:01 AM, the BSE Sensex slipped close to 100 points and tested 82,400, while the NSE Nifty50 climbed 13 points to cross 25,150.

As of 9:15 AM, the indices opened the markets on a muted note. The Sensex slipped more than 100 points and traded at 82,389, while the Nifty fell 41 points to touch 25,109, as of 9:16 AM.

On the 30-share Sensex, Sun Pharma, Trent, PowerGrid, Titan, and Tata Steel remained in green in the market opening hour. On the other hand, the laggards were dominated by Infosys, Tech M, HCL Tech, Bajaj Finance, and TCS. 

In the broader markets, the indices remained nearly flat. The Nifty Smallcap50 stood out and jumped 0.29 per cent. Sectorally, the IT index dragged in the morning and plunged more than 1 per cent. Meanwhile, the PSU Bank index gained 0.59 per cent.

The Indian rupee began the week on a softer note, slipping by 17 paise to trade at 85.97 against the US dollar during Monday’s early session. The decline was attributed to sustained foreign fund outflows and a firming greenback, according to currency analysts.

Trade Tariff Worries Add to Pressure

Currency traders said that the rupee’s weakness was further influenced by rising uncertainty over global trade tariffs, particularly the renewed action by US President Donald Trump. Although India is not yet subject to new US tariff measures, ongoing talks continue to determine the extent of duties that may be levied.

“India remains out of the tariffs band for now with negotiations still on to finalise the amount of tariff that the US could apply,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP. He projected that the rupee would likely move within a band of 85.50 to 86.00 during the day.

Adding to the rupee’s downward trajectory was the persistent selling by foreign institutional investors (FIIs). As per exchange data, FIIs pulled out Rs 5,104.22 crore from Indian equities on Friday, increasing pressure on the local currency. Meanwhile, in global commodities, Brent crude futures slipped marginally by 0.19 per cent, bringing the benchmark oil price down to $70.02 per barrel.

How Markets Fared Last Week And Outlook Ahead?

Notably, domestic equity benchmarks ended the previous week in the red, with the Sensex shedding 932.42 points, or 1.11 per cent, and the Nifty retreating by 311.15 points, or 1.22 per cent. The downtrend was driven by a combination of uninspiring quarterly earnings and lingering uncertainty over global tariffs.

Market sentiment this week will be shaped by a mix of corporate results and international economic data. Global investors are eyeing critical updates, including US inflation numbers and China’s GDP print, which could offer insight into the health of the world’s largest economies. Adding to the cautious mood are fresh trade concerns sparked by US President Donald Trump’s recent tariff threats aimed at Canada and other key partners — a development that has unsettled investor confidence.

With the start of a fresh earnings season, investors are expected to tread carefully while seeking clearer signals on both macroeconomic indicators and trade policy directions.

“First-quarter corporate earnings will be keenly watched over the next few weeks...,” noted SimranJeet Singh Bhatia, Senior Equity Research Analyst at Almondz Global. After last week’s subdued performance, participants will be closely monitoring the earnings announcements of several prominent firms such as HCL Technologies, Tech Mahindra, Axis Bank, Wipro, and JSW Steel — all of which are scheduled to release their results in this week.

As investors weigh global developments and await domestic earnings reports, the upcoming sessions could witness heightened volatility with direction hinging on cues from both fronts.