Markets open lower on FII selling, Trump’s tariff threats
Equity markets opened on a weaker note Monday, with the benchmark Nifty falling below the crucial 23,000 mark amid sustained foreign investor selling and growing concerns over potential US trade tariffs under former President Trump.
The Sensex opened lower at 75,700.43 compared to its previous close of 76,190.46 and is currently trading at 75,891.75, down by 298.71 points or 0.39 per cent. Meanwhile, the Nifty opened at 22,940.15 against its previous close of 23,092.20 and is now at 22,985.25, declining by 106.95 points or 0.46 per cent. The weakness follows three consecutive weeks of declines in domestic indices.
“NIFTY-50 has maintained its support of 23,000 levels, but the broader breakout will be only above 23,500 levels which is the 20-day SMA,” said Vikas Jain, Head of Research at Reliance Securities. He added that if 23,000 is breached, markets could see sharp unwinding and weakness.
Foreign Portfolio Investors (FPIs) have sold shares worth ₹69,000 crores in January so far, marking one of the highest monthly outflows. While domestic institutional investors provided some cushion with purchases of ₹67,000 crores, the overall market sentiment remains fragile.
“The benchmark index Nifty is currently 12 per cent below its record high, and prevailing sentiments suggest this bearish trend could continue for weeks,” noted VLA Ambala, Co-Founder of Stock Market Today. She highlighted that the NSE’s recent announcement to exclude Castrol India and Gland Pharma from F&O segment could impact these stocks.
“The Indian equity markets ended the day on a subdued note as global uncertainties and weak domestic cues weighed on investor sentiment,” said Mandar Bhojane, Equity Research Analyst at Choice Broking, adding that immediate support now lies at 22,800, while resistance remains firm at 23,000.
“The weakness that emerged on Wall Street on Friday may have reflected concerns about the outlook for interest rates ahead of the Federal Reserve’s monetary policy meeting next week,” observed Ameya Ranadive, Sr Technical Analyst at StoxBox. He emphasized that the index is operating within a no-money environment, suggesting choppy markets until the Union Budget.
“The market sentiment has turned weak. A major concern is that President Trump is coming up with new threats like the 25 per cent tariff on Columbia for its refusal to take back deported illegal immigrants,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Among sectors, metals and banking stocks faced selling pressure while consumer stocks showed resilience. JSW Steel was the top Nifty loser, falling 2.77 per cent, followed by BEL and IndusInd Bank which declined 2.20 per cent and 1.97 per cent respectively. Britannia led the gainers, rising 1.86 per cent, while HUL and ICICI Bank added 1.37 per cent and 0.63 per cent respectively.
Market participants are closely watching the US Federal Reserve’s monetary policy meeting scheduled for January 28-29 and India’s Union Budget presentation on February 1st. While the Fed is expected to maintain status quo on rates, its commentary on future policy direction will be crucial.
In global markets, Asian indices traded mixed after disappointing Chinese economic data. The US dollar index fell to a one-month low of 107, while Brent crude traded around $77 per barrel. Gold prices remained elevated near $2,770 per ounce amid dollar weakness.
Corporate earnings continue to influence stock-specific action, with results expected today from major companies including Coal India, IOC, Tata Steel, and Canara Bank. Recent strong quarterly performances from ICICI Bank, DLF, and JSW Steel have provided some optimism amid the broader market weakness.
