Market Opens with a Decline

Indian equity benchmarks started the day lower on Wednesday, breaking a two-day winning streak due to weak global cues and cautious investor sentiment. The BSE Sensex dropped by 165.3 points to 76,569.59, while the NSE Nifty fell by 51.55 points to 23,277.

Recent Market Performance

Earlier in the week, Indian markets showed strong performance, with the Sensex and Nifty reaching new highs. This was attributed to positive global cues, renewed domestic investor confidence, and hopes of easing US trade tensions, especially in the semiconductor sector.

Global Influences

Global markets have been volatile, reacting to the ongoing trade tensions between the US and China. Recent announcements by Nvidia regarding shipping restrictions to China have further unsettled investors, impacting Asian markets significantly.

Trade Policies and Market Reactions

US trade policies, including temporary duty exemptions and potential new tariffs, have created uncertainty. Despite this, global equities remained stable, supported by strong earnings and optimism that the worst of the trade war impacts might be temporary.

China's Economic Indicators

China's Q1 GDP exceeded expectations, growing by 5.4% year-on-year. However, officials have warned of pressures from rising tariffs and a complex external environment, casting doubts on the sustainability of recent export strengths.