Indian equity markets opened lower on Thursday as concerns over United States President Donald Trump's tariff threats weighed on investor sentiment. Both the Nifty 50 and BSE Sensex declined at the opening bell, with widespread selling pressure across most sectors.
The Nifty 50 index opened at 22,821.10 points, marking a fall of 111.80 points or 0.49 per cent, while the BSE Sensex slipped 266.34 points to start the session at 75,672.84.
Market analysts attributed the downturn to Trump's recent statements on imposing new tariffs.
His remarks suggested the United States could levy a 25 per cent tariff on automobiles, semiconductors, and pharmaceuticals, a move that has unsettled investors, particularly in the pharmaceutical sector.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked, "Trump's tariff talks continue to impact markets. Trump's declaration yesterday that the US will impose 25 pc tariffs on automobiles, semiconductors and pharmaceuticals impacted India's pharma stocks since India's leading pharma companies are major exporters to the US. It appears that Trump's intention is to negotiate and extract concessions before tariffs are imposed. It remains to be seen how this will pan out."
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Despite the prevailing caution, he noted some positive signs, stating, "A positive news is the RBI indicating growth recovery in H2 FY25. This bodes well for growth and earnings recovery in FY26. The market will start responding positively to the high frequency data indicating growth recovery. Beaten down midcaps like defence stocks are witnessing some buying."
The Reserve Bank of India’s (RBI) outlook on growth recovery in the second half of the financial year offered a glimmer of hope. However, the broader market remained under pressure due to lingering uncertainties surrounding global trade tensions.
Sector-wise, the Nifty Metal index emerged as the sole gainer, rising by 0.23 per cent, while other sectors bore the brunt of selling pressure. Nifty Auto declined 0.94 per cent, and Nifty FMCG fell 0.81 per cent, reflecting cautious investor sentiment.
Out of the 50 stocks on the Nifty index, 35 registered losses, 14 advanced, and one remained unchanged at the time of reporting.
The bearish trend in Indian markets mirrored developments across major Asian indices. Japan's Nikkei 225 fell over 1.6 per cent, Hong Kong's Hang Seng Index dropped more than 1.7 per cent, South Korea's KOSPI slipped 0.43 per cent, and Taiwan's Taiwan Weighted index declined 0.34 per cent.
The prevailing sentiment underscores the fragile global economic environment, where geopolitical uncertainties and potential trade disruptions continue to drive volatility.
Analysts suggest that investors will remain attentive to further developments on trade negotiations and domestic economic indicators, which could shape market movements in the coming weeks.
Also read: Trade deficit widens in Jan as non-oil, gold deficit ascends
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