Sensex, Nifty slip in early trade amid global sell-off

Equity benchmarks Sensex and Nifty declined in early trade as global sell-off, geopolitical tensions, US tariff threats and sustained foreign fund outflows weakened investor sentiment, tracking sharp losses on Wall Street and muted cues from Asian markets.

Stock markets fall in early trade amid geopolitical tensions, foreign fund outflows

Mumbai: Benchmark equity indices Sensex and Nifty drifted lower in early trade on Wednesday as heightened geopolitical tensions, weak global markets and persistent foreign fund outflows rattled investors’ sentiment.

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The 30-share BSE Sensex dropped 385.82 points to 81,794.65 in opening trade. The 50-share NSE Niftydeclined 91.5 points to 25,141.

From the 30-Sensex firms, Bharat Electronics, ICICI Bank, Trent, Larsen & Toubro, HCL Tech and Infosys were among the laggards.

However, Eternal, Sun Pharma, InterGlobe Aviation and Tata Steel were among the gainers.

Foreign institutional investors offloaded equities worth Rs 2,938.33 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 3,665.69 crore, according to exchange data.

In Asian markets, South Korea’s Kospi index, Japan’s Nikkei 225 index and Hong Kong’s Hang Seng index quoted lower, while Shanghai’s SSE Composite index traded marginally higher.

US markets ended sharply lower on Tuesday. The Nasdaq Composite index tumbled 2.39 per cent, S&P 500 dropped by 2.06 per cent and Dow Jones Industrial Average tanked 1.76 per cent.

“US equity markets closed sharply lower overnight, with the S&P 500 slipping 2 per cent and the Nasdaq plunging close to 2.5 per cent, marking the worst single-day fall since October. The global sell-off was triggered by renewed trade-war concerns after President Trump escalated tariff threats on select European nations opposing US control over Greenland, with proposed duties rising from 10 per cent in February to 25 per cent by June,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Renewed US tariff threats, coupled with persistent foreign investor selling, continue to weigh heavily on market sentiment, he added.

Brent crude, the global oil benchmark, dropped 1.11 per cent to USD 64.19 per barrel.

On Tuesday, the 30-share BSE Sensex tumbled 1,065.71 points or 1.28 per cent to settle at 82,180.47. The Nifty tanked 353 points or 1.38 per cent to end at 25,232.50.