CHENNAI: Despite hopes for positive investor sentiment following strong GDP numbers, Indian equity markets opened cautiously today, with benchmark indices BSE Sensex and NSE Nifty slipping amid multiple headwinds weighing on investor confidence.
Market Snapshot at Open:
Sensex: 80,870, down 581 points (-0.71%)
Nifty: 24,586, down 165 points (-0.67%)
Key Factors Impacting Sentiment:
US Tariff Concerns: Fresh tariffs on steel imports announced by US President Donald Trump rattled global markets, sparking worries about trade tensions and potential disruption in steel supply chains.
Rising Covid-19 Cases: A recent surge in Covid-19 infections in India has reignited concerns over economic recovery and possible renewed restrictions.
Foreign Institutional Investor (FII) Selling: Continued selling pressure by FIIs has added to the downward momentum in the markets.
Geopolitical Tensions: Escalating tensions between Russia and Ukraine have contributed to global uncertainty, affecting risk appetite.
RBI Monetary Policy Watch: Investors are nervous ahead of the Reserve Bank of India’s upcoming policy announcement, creating cautious positioning.
Sectoral Performance:
Weakness: The Nifty IT index led the losses, falling over 1%, followed by the Nifty Metal index, down nearly 0.9%, pressured by tariff-related fears.
Gains: The Nifty PSU Bank index bucked the trend, gaining 1.16%, supported by value buying in state-run banks.
Notable Movers:
Top Losers: HDFC Bank, L&T, Tata Steel, HCL Tech, Reliance Industries, Bajaj Finance, Infosys, Tech Mahindra, Bharti Airtel, Kotak Bank, Axis Bank, and Tata Motors, each down up to 1.7%.
On the Rise: Hindustan Unilever (HUL), Adani Ports, IndusInd Bank, Nestle India, and State Bank of India (SBI) managed to limit losses or post modest gains.
Broader Markets:
The Nifty MidCap index edged up 0.08%, showing resilience amid broader weakness, while the Nifty SmallCap index slipped marginally by 0.03%.
The India VIX, the volatility gauge, surged 8%, signaling heightened market nervousness.
Buzzing Stocks:
Niva Bupa: Shares plunged nearly 10% after around 7% of equity changed hands. Reports suggest that Fettle Tone LLP and CEO Krishnan Ramachandran plan to sell a combined 7.2% stake via block deals.
Metal Sector: Stocks including Welspun Corp, Vedanta, JSW Steel, Lloyds, NMDC, SAIL, and Tata Steel were among the top laggards, hit hard by steel tariff concerns.
IPO Activity:
Listing Today: Aegis Vopak and Schloss Bangalore IPOs will debut on the exchanges.
Allotments: Scoda Tubes (Mainline IPO), N R Vandana, and Neptune Petrochemicals (SME IPOs) will see their allotments finalized today.
Outlook:
Market participants remain on edge amid a mix of geopolitical concerns, macroeconomic uncertainties, and domestic Covid-19 developments. The upcoming RBI policy decision is expected to set the tone for the near term, while trade-related developments continue to dictate sectoral flows, particularly in metals and industrials.
Disclaimer: The stocks mentioned in this report are provided for informational purposes only and do not constitute investment recommendations. Investors are advised to exercise their own judgment and conduct due diligence before making any investment decisions.