Sensex, Nifty open lower amid global trade tensions

Indian stock markets opened in the red on Wednesday as concerns over global trade tensions weighed on investor sentiment. The benchmark indices, Nifty 50 and BSE Sensex, declined at the opening bell, with selling pressure observed across most sectors.

BSE Sensex started the session at 75,672.84, falling 266.34 points, while the Nifty 50 index opened at 22,821.10 points, down 111.80 points. Market experts attributed the decline to U.S. President Donald Trump’s tariff threats, which have added uncertainty to global trade dynamics.

“Trump’s tariff talks continue to impact markets. His announcement that the U.S. will impose 25% tariffs on automobiles, semiconductors, and pharmaceuticals has affected India’s pharma stocks since many leading companies export to the U.S. It seems Trump’s intention is to negotiate and extract concessions before implementing tariffs. The outcome of these negotiations remains to be seen,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Vijayakumar added that the Reserve Bank of India’s (RBI) indication of economic recovery in the second half of FY25 is a positive development. “This signals potential growth and earnings recovery in FY26. The market is expected to respond positively as high-frequency data indicates growth recovery. Beaten-down midcap stocks, especially in the defense sector, are witnessing some buying interest,” he noted.

In sectoral performance, Nifty Metal was the only gainer, rising 0.23%, while all other sectors faced selling pressure. Nifty Auto declined 0.94%, and Nifty FMCG dropped 0.81% as investors remained cautious. Among Nifty 50 stocks, 35 opened lower, 14 gained, and one remained unchanged.

The bearish sentiment was not confined to Indian markets, as major Asian indices also experienced declines. Japan’s Nikkei 225 fell over 1.6%, Hong Kong’s Hang Seng Index dropped more than 1.7%, South Korea’s KOSPI slipped 0.43%, and Taiwan’s Taiwan Weighted declined 0.34% at the time of reporting.

Overall, Indian markets are navigating a challenging global environment, with geopolitical and trade uncertainties contributing to volatility. Investors will closely monitor further developments in trade negotiations and domestic economic indicators.