Indian Equity Markets Open Strong

Indian equity benchmark indices, BSE Sensex and Nifty50, opened in green on Wednesday, with BSE Sensex moving up over 200 points and Nifty50 surpassing 23,300. At 9:20 AM, BSE Sensex was trading at 76,199.97, up 175 points or 0.23%. Nifty50 was at 23,201.30, up 36 points or 0.15%.

Analysts anticipate continued market volatility in the coming days as global trade policies remain in focus. (AI image)

Market Volatility and Global Trade Policies

Indian equity markets faced significant losses on the first trading day of the new financial year, with benchmark indices declining 1.5% due to concerns over US President Donald Trump's reciprocal tariff proposals. The uncertainty surrounding global trade policies is expected to keep the markets volatile.

Expert Insight

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, commented on the situation, highlighting the uncertainty regarding reciprocal tariffs and its impact on the market. He advised investors to wait for clarity on tariffs and market trends, noting that domestic consumption-driven sectors may remain resilient even in a sell-off scenario.

Global Market Trends

Meanwhile, the US trading session ended with gains for the S&P 500 and Nasdaq Composite, despite fluctuations caused by investor uncertainty. Asian markets showed weakness as investors remained cautious ahead of Trump's tariff announcement. Gold prices rose as investors sought safe-haven assets, and oil prices stabilized after a previous session's decline.

Investment Flows

Foreign portfolio investors registered net sales of Rs 5,902 crore on Tuesday, while domestic institutional investors purchased shares worth Rs 4,322 crore. The net short position of FIIs increased significantly, reflecting the ongoing market tensions.