Indian equity markets opened on a cautious and slightly weaker note on Tuesday, February 17, as investors turned defensive after the previous session’s rebound and assessed mixed global cues. Both benchmark indices slipped in early trade, reflecting profit-taking at higher levels and a lack of strong triggers to extend Monday’s gains.
At the open, the Sensex was down by around 150–200 points, while the Nifty 50 declined by roughly 40–60 points, indicating a modest but clear negative start. Sentiment suggested that traders were reluctant to take aggressive positions, preferring to wait for clearer signals from global markets and macroeconomic developments.
The Nifty 50 started the session below its previous close, moving lower in the opening minutes, while the Sensex also opened in the red amid selling pressure in select heavyweight stocks. The weakness was broad-based at the start, with declines seen across several frontline counters, although the overall fall remained contained. Market participants described the opening trend as a pause following the recent recovery, rather than the beginning of a sharp reversal.
"The markets opened flat to marginally lower and trading within a narrow consolidation band as cautious sentiment prevailed amid weekly expiry volatility and mixed global cues. At the same time, elevated valuations and subdued global risk environment capped upside momentum," said R Ponmudi, CEO at broking and wealth tech firm Enrich Money.
The subdued start came after a strong rebound in the previous session, when domestic markets had risen on renewed buying interest in banking, power and select infrastructure stocks. That rally helped ease concerns triggered by earlier volatility, but it also prompted short-term investors to book profits at the next available opportunity. Tuesday’s opening therefore reflected a natural consolidation phase, as markets attempted to find support after recent swings.
Global cues remained a key influence on early sentiment. Asian markets were trading mixed to slightly weak, offering little directional guidance, while uncertainty over the pace of global monetary easing and upcoming economic data kept risk appetite in check. These factors weighed on early trade in Indian equities, particularly in export-oriented and rate-sensitive segments. Foreign investor activity was also being watched closely, as recent sessions have seen alternating bouts of inflows and outflows, adding to near-term volatility.
Sectorally, early trends pointed to mild pressure in information technology and metal stocks, while banks and select financials showed relative resilience after recent gains. Defensive pockets such as FMCG and pharmaceuticals were mixed at the open, reflecting a cautious but not overtly risk-averse tone. Broader market indices also edged lower, indicating that sentiment among mid- and small-cap stocks remained guarded after sharp moves in recent weeks.
The opening trend suggests that markets may remain range-bound in the near term, with participants focusing on stock-specific cues, earnings-related developments and macro signals rather than taking broad directional bets. While underlying domestic fundamentals continue to provide support, short-term movements are likely to be driven by global developments and positioning-related factors.