Market Opens in Red Ahead of RBI’s Policy Review

Indian equity benchmark indices, BSE Sensex and Nifty50, opened lower on Wednesday, with the Sensex dipping over 350 points and Nifty50 falling below 22,450. At 9:16 AM, the Sensex was trading at 73,874.49, down 353 points or 0.48%, while Nifty50 was at 22,423.10, down 113 points or 0.50%.

Market experts suggest that volatility will persist until there's clarity on US tariffs, with individual stocks reacting to fourth-quarter results and forecasts.

Global Markets Feel the Pressure

The S&P 500 saw a significant drop, falling below 5,000 points for the first time in nearly a year, as hopes for US tariff adjustments faded. Asian markets also opened lower, impacted by the White House's imposition of heavy tariffs, including a 104% duty on China.

Currency and Commodity Markets React

The yen and Swiss franc gained against the dollar, while the Chinese yuan hit record lows. Gold prices declined as US Treasury yields rose, and oil prices fell to their lowest in four years amid demand concerns.

Investment Trends

Foreign portfolio investors (FPIs) recorded net sales of Rs 4,995 crore, whereas domestic institutional investors bought shares worth Rs 3,097 crore. The net short positions of foreign institutional investors (FIIs) increased slightly.