Sensex, Nifty Edge Lower Amid Global Trade Jitters and Trump Tariffs

Ponmudi R, CEO of Enrich Money, stated, "Indian equities are set to open with a cautious undertone as global trade uncertainties, driven by aggressive use of tariffs by the U.S. administration, continue to trigger a risk-off mood across global markets." He noted that heightened geopolitical tensions and continued weakness in the rupee weigh on confidence, which likely caps any meaningful upside in domestic equities even during short-term recoveries. He added, "Steady buying by domestic institutional investors continues to act as a key stabiliser, absorbing selling pressure and helping prevent deeper drawdowns in the market."

He observed that Nifty slips into a short-term bearish bias after breaking below the critical 25,600 support zone. The index remains in a broader consolidation-cum-corrective phase within the 25,500-26,000 band and continues to trade below key moving averages, reflecting muted momentum. While immediate support resides at 25,500, a pickup in expiry-related selling or fresh foreign institutional investor pressure could expose lower demand zones at 25,400 and 25,125. For the current expiry, the bias remains neutral to mildly bearish, with bulls requiring a strong close above 25,700 to stabilise sentiment.

Ponmudi R stated that Bank Nifty continues to show relative strength compared to the broader Nifty index despite recent dips. The trend in the banking index remains neutral to mildly positive, though a close below the 60,000 mark introduces a note of caution. The index holds above key short-term averages, with immediate support placed at the 59,800-59,700 range and resistance at 60,200-60,300.

Market experts suggest that selective strength in banks could continue to offer a cushion to the headline indices, provided broader market weakness does not drag the sector lower.

Global factors remain a primary concern for investors this week as international developments influence domestic trades. Banking and market expert Ajay Bagga said, "Trump Tariffs are the dominant theme this week."

He pointed out that Japanese yields are rising as "PM Sanae Takaichi announced that she will dissolve the parliament on Friday and call for a snap election on Feb 8th to get a stronger mandate for her fiscal stimulus and sales tax cuts based economic package." Additionally, European leaders meet on Thursday to evaluate options regarding the Trump Greenland tariffs, which go into effect from February 1.

- ANI