Mumbai (Maharashtra) [India], February 28 : Indian stock markets remained under pressure on Thursday as both benchmark indices opened lower, extending their negative trend.
The market decline was driven by continued foreign portfolio investor (FPI) outflows, muted earnings, and concerns over an economic slowdown.
The Nifty 50 index opened at 22,433.40, falling 111.65 points (-0.5 per cent), while the BSE Sensex started at 74,201.77, down 410.66 points (-0.55 per cent).
While foreign investors have been withdrawing funds, domestic investors have continued to invest.
"Stock markets dislike uncertainty, and uncertainty has been on the rise ever since Trump was elected the US president. The spate of tariff announcements by Trump has been impacting markets and the latest announcement of additional 10 per cent tariff on China is a confirmation of the market view that Trump will use the initial months of his presidency to threaten countries with tariffs and then negotiate for a settlement favourable to the US. It is likely to be avoided" said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
All sectoral indices saw sharp declines at the opening. Nifty Metal led the losses, falling 2.13 per cent, followed by Nifty Auto and Nifty Realty, both down 1.88 per cent.
Nifty Media dropped 1.78 per cent, and Nifty PSU Bank lost 1.64 per cent. Market sentiment remained weak as concerns over economic growth and earnings weighed on investor confidence.
At the time of filing this report, 47 out of 50 Nifty stocks were in the red, with only three stocks opening in the green. The biggest losers in early trade were IndusInd Bank, Mahindra & Mahindra, Tech Mahindra, Wipro, and Tata Steel. On the other hand, Coal India emerged as the top gainer.
Akshay Chinchalkar, Head of Research, Axis Securities said "The Nifty and the India VIX both declined for the seventh successive day, as investors sent a message that they see no big-sized plunges ahead, at least in the large-cap universe. The Nifty's daily ranges have shrunk since the gap-down seen at the Monday open, which is a sign that selling pressure is diminishing. 22500 remains immediate support followed by 22370, but green shoots will only emerge once the market ends above 22720 on a closing basis. Sentiment remains depressed, with only 10 per cent of the NSE500 stocks above their 100-day averages, but the trigger for a rebound so far has proved elusive".
Weakness in global markets also added to the selling pressure in Indian equities. Japan's Nikkei 225 fell 3.32 per cent, Hong Kong's Hang Seng Index declined 2.31 per cent, and South Korea's KOSPI dropped over 3 per cent.
With persistent foreign outflows and weak global cues, market volatility is expected to continue in the near term.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor