Mumbai: The Indian benchmark indices continued their losses on Wednesday, tracking persistent global risk-off sentiment, continued foreign fund outflows and mixed earnings cues.
As of 9.30 am, the Sensex lost 168 points, or 0.20 per cent to reach 82,012 and the Nifty declined 28 points, or 0.11 per cent to 25,204.
Main broadcap indices performed in line with benchmark indices, with the Nifty Midcap 100 losing 0.18 per cent, and the Nifty Smallcap 100 easing 0.11 per cent.
Sectorally, indices were trading mixed, with Nifty metal and pharma being the notable gainers — up 0.83 per cent and 0.86 per cent, respectively. IT and chemicals were among major losers, down 0.81 per cent and 1.21 per cent, respectively.
Immediate support lies at 25,050–25,100 zone, while resistance is now anchored near 25,350–25,400 zone, market watchers said.
US President Donald Trump threatened to impose 200 per cent tariffs on French wine and Champagne, said Vikram Kasat, Head Advisory, PL Capital.
Analysts said the stock selloff in US markets amid Trump’s renewed Greenland-related threats makes sense if investors are adopting a risk-off approach.
“If investors were simply moving to safer assets, bond prices would have increased. Instead, they also fell on Tuesday, sending yields to their highest value since August,” Kasat pointed out.
Greenland Prime Minister Jens-Frederik Nielsen on Tuesday asked residents to start preparing for a possible military invasion from the US, however adding that such a scenario is unlikely.
Another analyst noted that if the threatened tariffs come into effect, Europe could retaliate leading to a trade war negatively impacting global trade, resulting in further selling in stock markets.
In Asian markets, China’s Shanghai index gained 0.36 per cent, and Shenzhen added 1.03 per cent, Japan’s Nikkei declined 0.56 per cent, while Hong Kong’s Hang Seng Index dropped 0.18 per cent. South Korea’s Kospi eased 0.36 per cent.
The US markets ended in the red in the last trading session as Nasdaq eased 2.39 per cent. The S&P 500 lost 2.06 per cent, and the Dow declined 1.76 per cent.
On January 20, foreign institutional investors (FIIs) sold net equities worth Rs 2,938 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 3,666 crore.
(IANS)
