Sensex, Nifty open sharply lower as foreign outflows and tariff fears weigh on sentiment

Indian equity markets opened sharply lower on Monday as persistent foreign fund outflows, worries over possible US tariffs on Indian exports and broader geopolitical tensions dented investor confidence.

The benchmark 30-share BSE Sensex dropped 455.35 points to 83,120.89 in early trade, while the 50-share NSE Nifty fell 135.35 points to 25,547.95.

Selling pressure was broad-based as heavyweights including Bharat Electronics, Larsen & Toubro, Power Grid, Adani Ports, Infosys, Reliance Industries and Bajaj Finance lagged the market, though some stocks such as Hindustan Unilever, Asian Paints, Axis Bank and State Bank of India bucked the trend as modest gainers.

Data showed foreign institutional investors offloaded equities worth Rs 3,769.31 crore on Friday, while domestic institutional investors bought stocks worth Rs 5,595.84 crore.

“Indian equity markets have begun the week on a cautious footing as risk appetite remains restrained amid lingering global uncertainty, continued FII outflows and geopolitical overhangs,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm. He added that recent profit-booking across sectors had added to near-term market pressure.

The broader trend for the past week also underscored mounting nervousness, with the Sensex declining more than 2,100 points over the last five sessions and the Nifty tumbling around 2.5 per cent.

Markets in Asia presented a mixed picture, with South Korea’s Kospi, Shanghai’s SSE Composite and Hong Kong’s Hang Seng trading higher, while US markets ended the previous week in positive territory.

Analysts said sentiment had been further dampened by geopolitical developments, including unrest in Iran, uncertainty over Venezuela and potential trade disputes involving the United States. “The market has turned distinctly weak, weighed down by a series of India-specific and global geopolitical events,” said VK Vijayakumar, chief investment strategist at Geojit Investments.

Crude oil prices also edged up, with Brent crude climbing to around USD 63.49 per barrel, adding to the pressure on an oil-import-dependent economy.

On Friday, benchmark indices had already shown signs of strain, with the Sensex shedding over 600 points and the Nifty ending below 25,700, as risk aversion and foreign selling continued to challenge market resilience.

Investors will be watching upcoming economic data and corporate earnings closely, even as macroeconomic uncertainties and external risks persist, shaping market direction in the near term.

With PTI inputs