Mumbai (Maharashtra) [India]: The Indian stock market opened on a cautious note this Monday, displaying mixed trends as global uncertainties continue to weigh on investor sentiment. The Nifty 50 index opened at 22,521.85, down by 30.65 points or 0.14%, while the BSE Sensex saw a slight uptick, opening at 74,474.98 with a gain of 142.40 points or 0.19%.
Key Market Insights
- Global Tensions: Experts attribute the market’s bearish trend to ongoing global tensions, particularly the tariff conflicts and geopolitical uncertainties involving the United States. The cycle of threats, tariff impositions, and rollbacks has significantly eroded market sentiment and U.S. soft power.
- Sector Performance:
- Nifty Bank and Auto shares faced selling pressure, while the Nifty Media index surged by over 1% during the opening session.
- IndusInd Bank emerged as the top loser in the Nifty 50, declining by 5.35%, followed by Mahindra & Mahindra (down 2.22%) and Trent (down 1.29%).
- Out of the Nifty 50 stocks, 28 opened in the red, 20 gained, and 2 remained unchanged.
Expert Opinions
Ajay Bagga, a banking and market expert, emphasized the need for caution given the global “polycrises”:
“Indian markets are in a shadow of the global polycrises in the making. We can’t expect a sustainable bottom formation until there’s a semblance of order in global economic relations and geopolitics. Time to stay cautious and invest fresh funds in a slow format.”
He also highlighted the second-order impacts of the tariffs, such as:
- Worsening business outlooks
- Declining consumer sentiment
- Inflation threats
- Risks to economic growth
- Geopolitical risks involving a potential NATO retreat by the U.S.
Sunil Gurjar, a SEBI-registered research analyst and founder of Alphamojo Financial Services, noted:
“The Nifty 50 is bouncing back from support and approaching resistance. A breakout above 23,400 would signal an uptrend, potentially ending the bearish trend and starting a bullish one.”
Asian Markets Show Mixed Trends
- Japan’s Nikkei 225 and South Korea’s KOSPI indices opened with gains.
- Hong Kong’s Hang Seng index fell by over 2%, while the Taiwan Weighted Index declined by 0.36%.
Outlook: Caution Advised
With ongoing global uncertainties and geopolitical tensions, experts suggest a cautious investment approach in the near term. The market’s direction could significantly depend on global trade developments and the resolution of tariff disputes.