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Sensex, Nifty Slide on Global Woes, FII Selling, and Trade War Fears

Indian equity benchmarks opened lower, extending losses amid weak global cues and continued foreign institutional investor selling. Sectoral performance was mixed, with Pharma and Metal gaining while IT and Chemicals declined. Market sentiment was dampened by renewed US trade threats and a global risk-off approach, as reflected in falling Asian and US markets. Analysts pointed to specific support and resistance levels for the Nifty amid the current volatility.

Key Points: Sensex, Nifty Fall on Global Cues & FII Outflows

  • Markets track global risk-off sentiment
  • Persistent FII selling continues
  • Mixed sectoral performance with Pharma up, IT down
  • US trade threats spark fresh global worries
2 min read

Sensex, Nifty open lower over weak global cues, FII selling

Indian markets open lower tracking global selloff, persistent FII selling, and fears of renewed US-EU trade tensions. Key levels and sectoral performance analyzed.

"If investors were simply moving to safer assets, bond prices would have increased. Instead, they also fell... - Vikram Kasat"

Mumbai, Jan 21

The Indian benchmark indices continued their losses on Wednesday, tracking persistent global risk-off sentiment, continued foreign fund outflows and mixed earnings cues.

As of 9.30 am, the Sensex lost 168 points, or 0.20 per cent to reach 82,012 and the Nifty declined 28 points, or 0.11 per cent to 25,204.

Main broadcap indices performed in line with benchmark indices, with the Nifty Midcap 100 losing 0.18 per cent, and the Nifty Smallcap 100 easing 0.11 per cent.

Sectorally, indices were trading mixed, with Nifty metal and pharma being the notable gainers -- up 0.83 per cent and 0.86 per cent, respectively. IT and chemicals were among major losers, down 0.81 per cent and 1.21 per cent, respectively.

Immediate support lies at 25,050-25,100 zone, while resistance is now anchored near 25,350-25,400 zone, market watchers said.

US President Donald Trump threatened to impose 200 per cent tariffs on French wine and Champagne, said Vikram Kasat, Head Advisory, PL Capital.

Analysts said the stock selloff in US markets amid Trump's renewed Greenland-related threats makes sense if investors are adopting a risk-off approach.

"If investors were simply moving to safer assets, bond prices would have increased. Instead, they also fell on Tuesday, sending yields to their highest value since August," Kasat pointed out.

Greenland Prime Minister Jens-Frederik Nielsen on Tuesday asked residents to start preparing for a possible military invasion from the US, however adding that such a scenario is unlikely.

Another analyst noted that if the threatened tariffs come into effect, Europe could retaliate leading to a trade war negatively impacting global trade, resulting in further selling in stock markets.

In Asian markets, China's Shanghai index gained 0.36 per cent, and Shenzhen added 1.03 per cent, Japan's Nikkei declined 0.56 per cent, while Hong Kong's Hang Seng Index dropped 0.18 per cent. South Korea's Kospi eased 0.36 per cent.

The US markets ended in the red in the last trading session as Nasdaq eased 2.39 per cent. The S&P 500 lost 2.06 per cent, and the Dow declined 1.76 per cent.

On January 20, foreign institutional investors (FIIs) sold net equities worth Rs 2,938 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 3,666 crore.

- IANS

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Reader Comments

S
Sarah B
Interesting to see Pharma and Metals holding up. In times of global uncertainty, these defensive and commodity sectors often show resilience. Might be a good time to review my portfolio allocation.
A
Arjun K
The fall isn't too bad, just a minor correction. Support at 25,050 seems strong. This is a buying opportunity for long-term investors. Remember, the Indian growth story is intact. Global issues will pass.
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Priya S
Trump's threats are causing ripples across the world again. Why must our Sensex react to every tweet from the West? We need stronger domestic drivers. Kudos to DIIs for providing support.
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Vikram M
With respect, the article focuses too much on global cues. What about the upcoming budget? That's the real trigger for the Indian market right now. Local factors are equally important.
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Karthik V
IT stocks down makes sense if global trade fears rise. But a 0.2% dip in Sensex is nothing to panic about. Chai peelo and hold your stocks, yaar. Market volatility is normal.

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