Mumbai (Maharashtra) [India]: The Indian stock market opened lower on Friday, following a record-breaking close on Thursday, as investors reacted to global uncertainties and the impending broad-based reciprocal tariffs set to take effect on April 2.
The BSE Sensex fell 69.91 points, opening at 76,278.16, while the NSE Nifty declined 22.40 points to start at 23,168.25. Despite the weak opening, market breadth remained mixed, with 31 Nifty companies advancing and 19 declining.
Among the top gainers were Bajaj Finance, Nestle India, Shriram Finance, ONGC, and Maruti. However, the IT sector led the losses, with Infosys, HCL Technologies, TCS, Wipro, and Tech Mahindra among the biggest decliners.
Banking and market expert Ajay Bagga pointed to increasing investor concerns over economic uncertainty. He noted that while central banks worldwide—including those in Indonesia, Brazil, the UK, and the US—have provided their outlooks this week, they have failed to offer clarity on key economic risks.
“The world is flying blind into April 2 broad-based reciprocal tariffs,” Bagga warned, emphasizing that volatility, caution, and capital preservation remain the dominant market themes.
Although geopolitical risks remain subdued, Bagga highlighted potential unintended consequences, particularly given the failure of Russia-U.S. talks to secure a significant ceasefire. Meanwhile, escalating tensions in the Middle East, including the renewed Israel-Hamas conflict and France’s advisory for its citizens to leave Iran, have added to investor concerns.
The IT sector faced additional pressure following Accenture’s latest earnings report, which raised concerns about the industry’s growth prospects. Given Accenture’s significant exposure to US government contracts, its subdued outlook has sparked worries for Indian IT services firms.
On the positive side, Indian markets have witnessed strong Foreign Portfolio Investor (FPI) inflows in two of the last three trading sessions. Bagga emphasized that if this trend continues and domestic capital currently sitting on the sidelines enters the market, Indian equities could regain their upward momentum toward new record highs.
However, he cautioned that the uncertainty surrounding April 2 remains difficult to price or hedge against, with global risks still evolving.
“For now, we remain cautiously optimistic but very wary of surprises on April 2. Risks are being priced in, but uncertainty remains a challenge for investors in a potential ‘lose-lose’ trade war scenario,” Bagga said.