CHENNAI: Indian and Asian markets opened on a cautious note today, weighed down by weak global cues and renewed concerns over U.S. trade actions. In early trade, the Sensex slipped by around 200 points and the Nifty50 was down by about 0.26 percent, marking yet another weak start after four straight sessions of losses. The broader sentiment remains fragile as foreign portfolio investors continue to pare holdings, adding to the pressure on domestic equities.
A key drag on sentiment came from Washington, where the US announced a 100 percent tariff on pharmaceuticals and a range of other imports effective October 1. This has triggered concerns for Indian exporters, particularly in the pharma and IT sectors, which are heavily reliant on the American market. Analysts say that while India’s domestic growth story remains strong, global developments are likely to dominate near-term trading patterns.
Asian markets also paused their recent rally, with the MSCI Asia-Pacific ex-Japan index down about 0.1 percent. Investor caution was evident as traders awaited fresh economic data and policy signals from the U.S. Federal Reserve. The Japanese yen weakened further, underscoring the strength of the US dollar and the broader uncertainty in currency markets.
Market strategists highlight that India's Nifty faces resistance around the 25,000 mark, with immediate support near 24,500. The volatility index has inched up, indicating expectations of sharper intraday swings. Futures trading on the GIFT Nifty also pointed to weakness ahead of the market open.
Despite the cautious mood, some positive themes are at play. India continues to attract strong IPO interest, with investment banks projecting higher fund-raising activity in 2025 compared to last year. Domestic institutional investors are also expected to provide some support if foreign outflows intensify.
In the near term, traders are bracing for volatility, particularly in sectors sensitive to US policies. A break below the 24,500 level on the Nifty could open further downside, while any easing of global concerns may allow a rebound toward 25,000. Much will depend on upcoming US data and the market’s reading of the Federal Reserve’s stance on interest rates, which continue to shape capital flows into emerging markets.