Market Opens in Red Amid Global Uncertainties

Indian equity benchmarks, BSE Sensex and Nifty50, faced a downward trend at the opening bell on Tuesday. The BSE Sensex dipped below 72,800, while Nifty50 struggled to stay above 22,000. By 9:17 AM, BSE Sensex was recorded at 72,707.94, marking a decrease of 378 points or 0.52%. Similarly, Nifty50 was at 21,973.25, down by 146 points or 0.66%.

Global Tensions and Domestic Challenges

The Indian stock markets closed flat on Monday, influenced by continuous Foreign Institutional Investor (FII) selling, US tariff implementations, and the ongoing Russia-Ukraine conflict. Experts predict a flat to downward trend, citing mixed international indicators and a lack of domestic catalysts.

Expert Insights

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the uncertainty caused by global trade tensions, particularly highlighting the impact of Trump's tariff policies. He advised investors to remain cautious and wait for a clearer scenario to unfold.

US and Asian Market Reactions

Following President Donald Trump's introduction of 25% tariffs on Canada and Mexico, US markets saw a significant decline, with the S&P 500 recording its largest single-day percentage drop since December 18. Asian equities also declined, reflecting concerns over potential trade conflicts affecting global economic expansion.

Investment Trends

On Monday, foreign portfolio investors registered net sales of Rs 4,781 crore, while domestic institutional investors purchased shares valued at Rs 8,790 crore. The FIIs' net short position slightly decreased from Rs 1.88 lakh crore on Friday to Rs 1.87 lakh crore on Monday.