Mumbai (Maharashtra) [India], June 2 : Indian stock markets kicked off the fresh week on a negative note, weighed down by global concerns despite strong domestic GDP figures.
The benchmark indices slipped in early trade on Monday, with investor sentiment dampened by renewed tariff threats from U.S. President Donald Trump.
The Nifty 50 index opened at 24,669.70, registering a decline of 81.00 points or 0.33 per cent. Similarly, the BSE Sensex also opened lower at 81,214.42, down by 236.59 points or 0.29 per cent. The indices decline further in early trade.
The pressure came amid Trump's announcement to revise tariffs on steel and aluminium, reigniting fears of a trade war and economic strain.
Market experts noted that while India's macroeconomic fundamentals remain strong, as reflected in the robust GDP numbers, the external headwinds triggered by the U.S. tariff revision have overshadowed the domestic positives. The threat of a wider impact on global trade and capital flows has made investors cautious.
Ajay Bagga, Banking and Market Expert, told ANI, "Asian markets are down as tariff tantrums and tax uncertainty rule sentiments. China-US public spat is not being taken seriously, given the rollback they did a month back after posturing. The 50 per cent Steel and Aluminium tariffs announced by Trump from July 4th are a bit of a 1 per cent type dampener".
He further added, "Ukraine Russia conflict widening is a risk, but markets are ignoring it for now. Indian markets should have done well today on the back of a superb March quarter GDP print and expectations of a rate cut and further monetary easing at the RBI MPC later this week. However, the global weakness is holding the Indian markets also in its grip today".
On the National Stock Exchange (NSE), sectoral indices displayed a mixed trend. Except for Nifty FMCG and Nifty PSU Bank, all other sectoral indices opened in the red, highlighting broad-based selling pressure.
Nifty IT emerged as the worst performer among the indices, declining by 1.28 per cent, indicating strong selling pressure in the technology sector.
Nifty Bank also saw a decline of 0.5 per cent, Nifty 100 fell by 0.68 per cent, while Nifty Smallcap was down by 0.43 per cent. The Midcap index showed relative resilience but still opened 0.10 per cent lower at the time of filing this report.
"Currently, the price is trading between a hurdle and support. A breakout above resistance would indicate a continuation of the uptrend in the sector. The Indian stock market concluded the week with mixed results, as benchmark indices registered their second consecutive weekly decline, while the broader market experienced some growth," said Sunil Gurjar, SEBI-registered research analyst and founder of Alphamojo Financial Services.
The negative sentiment was not confined to Indian markets alone. Other major Asian markets also opened weak on Monday. Japan's Nikkei 225 dropped by more than 1.4 per cent, Hong Kong's Hang Seng index declined over 2.3 per cent, Taiwan's Weighted index lost 1.61 per cent, and Indonesia's Jakarta Composite fell by 1.44 per cent.
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