Nifty 50 Falls Over 100 Points, BSE Sensex Slips Below 83,000 Amid Donald Trump Tariff Uncertainty
Mumbai: Indian benchmark indices opened lower on Tuesday, tracking weak global cues and investor concerns over fresh tariff threats from US President Donald Trump. Both the Nifty 50 and BSE Sensex declined in early trade, reflecting cautious market sentiment.
At 9:16 AM, the Nifty 50 was trading at 25,608.90, down 104 points or 0.40%, while the BSE Sensex dropped 359 points, or 0.43%, to 82,935.89, slipping below the key 83,000 level.
Global Trade Concerns Weigh on Markets
Market sentiment remained subdued amid uncertainty over US trade policy and tariffs. Analysts said Trump’s latest warnings to trading partners and the European Union’s decision to freeze its trade deal with the US have increased global market volatility.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said investors are closely watching developments in US trade policy, noting that tariff-related tensions could continue to influence global and domestic markets.
IT Stocks Under Pressure, FIIs Provide Support
Weakness in technology stocks, driven by concerns over the potential impact of artificial intelligence and declining American Depositary Receipts (ADRs) of Indian IT companies, also weighed on the market.
However, foreign institutional investors (FIIs) have shown renewed interest in Indian equities, remaining net buyers in 10 of the last 17 trading sessions. Analysts attributed this shift to improving corporate earnings and strong macroeconomic fundamentals.
Sectors such as capital goods and financials, where FIIs have increased exposure, are expected to remain resilient, while IT stocks may continue to face pressure.
Global and Asian Markets Reflect Weak Sentiment
Wall Street closed sharply lower on Monday amid tariff uncertainty and concerns about the impact of artificial intelligence on corporate earnings. Asian markets also opened weak, reflecting similar investor caution.
In currency markets, the US dollar remained subdued as investors assessed ongoing trade policy developments and their potential impact on global economic stability.
Despite the early decline, analysts expect Indian markets to remain range-bound with sector-specific opportunities supported by domestic economic strength and continued foreign investment inflows.