Mumbai: The Indian benchmark indices opened the week in the red zone on Monday, tracking weak global cues after geopolitical trade tensions rose due to US administration’s comments of additional tariffs on European countries.
As of 9.30 am, Sensex lost 449 points, or 0.54 per cent to reach 83,120 and Nifty declined 148 points, or 0.58 per cent to 25,546.
Main broadcap indices performed in line with benchmark indices, with the Nifty Midcap 100 losing 0.42 per cent, and the Nifty Smallcap 100 easing 0.54 per cent.
Among sectors, except Nifty FMCG, all indices were trading in the red. IT, media as well as oil and gas were among major losers, down over 1 per cent each.
Immediate support lies at 25,600 and 25,450 zones, while resistance remained at 25,875 followed by 26,000 and 26,100, market watchers said.
Analysts predicted volatile days for stock markets in the near-term amid heightened geopolitical risks. They highlighted US President Donald Trump’s disruptive policies impacting international trade and global economic growth.
“If President Trump walks his talk and imposes 10 per cent tariffs on the eight European countries on February 1st and follows it up by raising the tariffs to 25 per cent from June 1 onwards, retaliation by the European bloc is almost certain,” they said.
Asia-Pacific markets traded largely with losses during the morning session as investors parsed key economic data from China along with US President Donald Trump’s threats to European countries on additional tariffs for gaining control over Greenland.
China’s economic growth slowed to its weakest pace in nearly three years in the fourth quarter amid decline in domestic demand.
In Asian markets, China’s Shanghai index added 0.13 per cent, and Shenzhen eased 0.01 per cent, Japan’s Nikkei declined 1.05 per cent, while Hong Kong’s Hang Seng Index lost 1 per cent. South Korea’s Kospi advanced 0.85 per cent.
The US markets ended in the red in the last trading session as Nasdaq eased 0.06 per cent. The S&P 500 lost 0.06 per cent, and the Dow declined 0.17 per cent.
On January 16, foreign institutional investors (FIIs) sold net equities worth Rs 4,346 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 3,935 crore.
(IANS)
