Global Concerns Weigh Down Indian Stock Markets Despite Strong GDP
Indian stock markets opened negatively due to global concerns, with indices slipping despite strong domestic GDP figures. Renewed U.S. tariff threats and fears of a trade war dampened investor sentiment. Nonetheless, India’s macroeconomic fundamentals remain robust, but global pressures continue to overshadow these positives.
- Country:
- India
The Indian stock market commenced the week on a downturn, influenced by international apprehensions despite solid domestic GDP numbers. On Monday, benchmark indices witnessed declines as investor sentiment suffered amidst renewed tariff threats from U.S. President Donald Trump.
Opening at 24,669.70, the Nifty 50 index noted a dip of 81.00 points or 0.33 percent. Similarly, the BSE Sensex opened lower at 81,214.42, down 236.59 points or 0.29 percent. The downward trajectory continued into early trade, driven largely by Trump's tariff announcements on steel and aluminum, stirring fears of a trade war and economic strain.
Market analysts highlighted that India's macroeconomic foundations remain solid, as shown by strong GDP outcomes. However, external challenges from the U.S. tariff adjustments have overshadowed domestic positives, creating caution among investors. Ajay Bagga, a banking and market expert, commented to ANI on the negative sentiment affecting Asian markets, partially due to U.S.-China tensions. Yet, domestic factors such as the March quarter GDP report and anticipated RBI monetary easing offered some optimism, stifled by global market weaknesses. Sectoral indices, save for Nifty FMCG and Nifty PSU Bank, mostly opened in the red, forecasting widespread selling pressure.
Nifty IT stood as the indices' weakest link, dropping 1.28 percent, reflecting intense selling in the technology sector. The Nifty Bank fell by 0.5 percent, Nifty 100 shrank by 0.68 percent, and the Nifty Smallcap decreased by 0.43 percent. Although showing some resilience, the Midcap index opened 0.10 percent lower.
Sunil Gurjar, a SEBI-registered research analyst and founder of Alphamojo Financial Services observed that prices hover between resistance and support, yet a breakout could signal a sector uptrend continuation. Other key Asian markets also presented a weak opening Monday, with Japan's Nikkei 225 reducing by over 1.4 percent, Hong Kong's Hang Seng index by 2.3 percent, Taiwan's Weighted index by 1.61 percent, and Indonesia's Jakarta Composite by 1.44 percent.
(With inputs from agencies.)
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