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Sensex, Nifty Open Lower Amid Tariff Fears and Geopolitical Tensions

Indian benchmark indices, Sensex and Nifty, opened with mild losses on Wednesday, tracking mixed Asian markets amid rising geopolitical tensions and tariff-related concerns. While the main indices fell, the broader market showed resilience with the Midcap and Smallcap indices trading in positive territory. Analysts noted the market lacks a clear trend and warned that upcoming events, particularly a US Supreme Court verdict on tariffs, could trigger high volatility. Sectoral performance was mixed, with Auto declining while Consumer Durables, IT, and Metals posted gains.

Key Points: Sensex, Nifty Fall on Tariff Concerns, Mixed Asia Cues

  • Indices open lower amid tariff concerns
  • Midcap and Smallcap indices diverge positively
  • Auto sector leads losses, IT gains
  • US Supreme Court tariff verdict a key risk
2 min read

Sensex, Nifty open lower amid tariff-related concerns

Indian stock markets opened lower tracking Asian peers. Analysts warn of volatility from US tariff verdicts and geopolitical risks. Check key levels.

"Events and news may cause high volatility... with US President Donald Trump's tweet or action remaining a key watch point. - Market Watchers"

Mumbai, Jan 7

The Indian benchmark indices posted mild losses early on Wednesday amid rising geopolitical tensions and fresh tariff-related concerns, tracking mixed cues from Asian markets.

As of 9.30 am, Sensex slipped 156 points, or 0.18 per cent to 84,907 and Nifty eased 54 points, or 0.21 per cent to 26,124.

Main broad-cap indices showed clear divergence with benchmark indices, with the Nifty Midcap 100 up 0.22 per cent, while the Nifty Smallcap 100 gained 0.25 per cent.

Sectorally, Nifty Auto was the top loser down 0.49 per cent. Sectors such as consumer durables, IT and metal gained 1.15 per cent, 0.91 per cent and 0.53 per cent, respectively.

Immediate support lies at 26,000-26,050 zone, and resistance placed at 26,300-26,350 zone, market watchers said.

Analysts said that recent market movements have been devoid of any trend and clear direction with few mega stocks disproportionately affecting the market. Despite positive institutional buying, Nifty fell 71 points yesterday due to sharp declines in two stocks, they said.

These two stocks' large derivative and cash market volumes indicated settlement day activity, which were technical rather than fundamental, they added.

Events and news may cause high volatility in the future with US President Donald Trump's tweet or action remaining a key watch point. Investors also closely watch the US Supreme Court verdict on Trump tariffs. If the verdict goes against the reciprocal tariffs, it will create huge volatility in stock markets, market watchers said.

Asian region traded mixed with defence stocks snapping the two-day winning streak. Investors weighed in geopolitical risks after the US attack on Venezuela and renewed rhetoric over Greenland.

In Asian markets, China's Shanghai index added 0.29 per cent, and Shenzhen gained 0.35 per cent, Japan's Nikkei lost 0.64 per cent, while Hong Kong's Hang Seng Index shed 1.01 per cent. South Korea's Kospi advanced 1.18 per cent.

The US markets were in the green zone overnight as Nasdaq added 0.65 per cent. The S&P 500 gained 0.62 per cent, and the Dow moved up 0.99 per cent.

On January 6, foreign institutional investors (FIIs) sold net equities worth Rs 106 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 1,749 crore.

- IANS

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Reader Comments

P
Priya S
Midcap and Smallcap indices are green while Nifty is down. This is interesting! Maybe it's time to look beyond the usual blue-chips. The real growth story for retail investors might be in these segments.
A
Aman W
Auto sector down again. With the EV push and changing consumer sentiment, this sector needs a serious policy boost from the government. As a long-term investor, I'm staying cautious here.
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Sarah B
The article mentions the fall was due to "technical rather than fundamental" reasons in two stocks. This is a critical point often missed. Short-term noise shouldn't dictate long-term strategy. Stay invested, folks.
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Vikram M
FIIs selling and DIIs buying heavily. This pattern has been consistent. It shows foreign money is jittery about global trade wars, but Indian institutions are betting on the India story. I'm with the DIIs on this one.
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Karthik V
Respectfully, the media focuses too much on daily points movement. A 0.2% dip is just normal market breathing. For the common investor, SIP in good mutual funds is the way to go. Don't panic over these headlines.
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Nisha Z
IT and Metals gaining is a good sign. Maybe the global

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