Nifty, Sensex Decline at Opening Amid Persistent FPI Selling and US Tariff Concerns

The Indian stock markets began Tuesday’s trading session in the red, as the Nifty 50 index and BSE Sensex both registered early losses. Weighed down by continued foreign portfolio investor (FPI) selling and mounting uncertainty over the delayed India-US trade deal, investor sentiment remained cautious across the board.

The Nifty 50 opened at 24,609.65, shedding 71.25 points (0.29%), while the Sensex started lower at 80,620.25, down by 270.77 points (0.33%). According to market analysts, Indian equities are currently in an oversold zone, and any short-term bounce will be contingent on a reversal of sustained FPI outflows. He further cautioned that Indian stocks are in a heavily oversold phase, compounded by weak earnings and the upcoming monthly expiry. “It’s a time to wait, consolidate, and watch how things unfold. It’s been ten months since the markets hit their all-time highs,” he added.

Global Market Sentiment and Trade Concerns

Globally, markets are keeping a close eye on the US-China trade talks in Stockholm and a slew of upcoming economic data, including job growth, unemployment figures, and central bank moves. There’s growing weariness among investors over “Trump Tariff ennui” , a pattern of aggressive trade rhetoric followed by lukewarm resolutions.

Despite a US-EU trade deal, Asian markets remained cautious. Japan’s Nikkei 225 dropped 0.83%, Singapore’s Straits Times lost 0.44%, Hong Kong’s Hang Seng declined 1.25%, and Taiwan’s Weighted Index fell 1.01%. South Korea’s KOSPI, however, bucked the trend with a 0.61% gain.

Sectoral Performance and Broader Indices

Back home, the broader NSE indices reflected mixed sentiment. The Nifty 100 remained flat, Nifty Midcap 100 edged up 0.11%, while the Nifty Smallcap dipped slightly by 0.04%.

Among sectoral performers:

• Nifty IT continued its downward slide, down by 0.36%
  
• Nifty Metal gained 0.41%
  
• Nifty Media rose 0.34%
  
• Nifty FMCG gained 0.22%
  
• Nifty Auto, Pharma, PSU Bank, and Realty indices also registered modest gains
  

Technical charts suggest further downside risk unless Nifty reclaims the 25,000 level. “The index has its sights on the 24,400–24,500 support zone. The real test lies at 24,200,” said Akshay Chinchalkar, Head of Research at Axis Securities.

Earnings Watch

A host of key Indian firms are set to announce their Q1 results today, including Larsen & Toubro, NTPC, Asian Paints, Varun Beverages, GMR Airports, GE Vernova, Bank of India, Piramal Enterprises, and Welspun Corp among others.