Sensex: Investor mood is cautious due to geopolitical worries, with the Nifty opening red and the down 250 points
Sensex: Due to ongoing worries about additional 25% US sanctions on nations doing business with Iran and growing geopolitical tensions in the country, domestic stock markets began lower on Wednesday, continuing selling pressure from the previous trading session.
Market sentiment was also negatively impacted by ongoing withdrawals of foreign portfolio investors (FPIs).
The BSE Sensex began at 83,370.06, down 257.63 points or 0.31 percent, while the Nifty 50 index opened at 25,648.55, down 83.75 points or 0.33 percent.
As global concerns, such as the ongoing tariff threats from the United States and increased geopolitical risks, continued to put pressure on Indian stocks, market investors remained cautious. FPI selling has put further downward pressure on local markets.
“Indian equity markets are likely to trade steady to mildly cautious today, following a mixed close in the previous session,” said Ponmudi R, CEO of Enrich Money, in reference to the market forecast. In the face of continuous FII selling, tariff-related uncertainty, ongoing geopolitical concerns, and rising petroleum prices, sentiment is still cautious.
While certain Asian markets are displaying pockets of resilience, he said, global signs are still conflicting, with US indexes closing the night down.The markets are still in a consolidation period overall, he added, with selling pressure close to important resistances and selective buying at support levels.
The majority of the National Stock Exchange indexes showed signs of selling pressure, while more general market indicators also opened lower. The Nifty Midcap 100 fell 0.17 percent, while the Nifty 100 index fell 0.29 percent. With a 0.07 percent decline, the Nifty Smallcap 100 saw rather modest losses.
During the first session, the NSE’s sectoral performance showed a mixed trend. While the Nifty FMCG index increased by 0.06 percent, the Nifty Auto index fell by 0.08 percent. Both Nifty Media and Nifty IT had a 0.25 percent decrease. The Nifty PSU Bank index increased by 0.21 percent, while Nifty Metal increased by 0.25 percent.
According to statistics released on Tuesday, domestic institutional investors (DIIs) contributed some assistance with net purchases of Rs 1,181.78 crore, while FPIs were net sellers in the cash market, unloading shares valued at Rs 1,499.81 crore.
Vinod Nair, Head of Research at Geojit Investments, “Domestic equities experienced a downturn due to renewed concerns about potential U.S. tariffs on countries trading with Iran, overshadowing the initial optimism from the newly appointed U.S. ambassador’s positive statements on the trade deal.”
He continued by saying that despite the rupee’s decline, increased oil prices, higher US bond rates, and ongoing FII withdrawals, investor mood remained cautious.
Nair said that while the Q3 earnings season started off mutedly with reports from a prominent IT major, India’s December CPI stayed within the RBI’s target range, encouraging expectations of further rate decreases.