The Indian stock market opened in the red on Friday, following a record-breaking close in the previous session, as global uncertainties and the looming implementation of broad-based reciprocal tariffs on April 2 dampened investor sentiment.
The BSE Sensex fell by 69.91 points, opening at 76,278.16, while the NSE Nifty slipped 22.40 points to begin the session at 23,168.25. Despite the weak start, market breadth was mixed, with 31 Nifty-listed companies advancing and 19 declining.
Top gainers in early trade included Bajaj Finance, Nestle India, Shriram Finance, ONGC, and Maruti Suzuki. In contrast, the IT sector led the decline, with Infosys, HCL Technologies, TCS, Wipro, and Tech Mahindra among the major losers.
Ajay Bagga, a banking and market expert, said investor concerns over economic uncertainty have intensified. He noted that central banks from countries including Indonesia, Brazil, the UK, and the US Federal Reserve issued their outlooks this week but failed to provide clarity on key global economic risks.
“The world is flying blind into the April 2 broad-based reciprocal tariffs,” Bagga warned, adding that volatility, caution, and capital preservation are currently dominating market sentiment.
While geopolitical risks remain subdued for now, Bagga highlighted potential unintended consequences as U.S.-Russia talks have failed to secure a substantial ceasefire. The renewed conflict between Israel and Hamas, along with France advising its citizens to leave Iran, has further fueled concerns of rising tensions in the Middle East.
The IT sector faced additional pressure after Accenture’s earnings report raised doubts about future growth prospects for the industry. Given Accenture’s substantial exposure to U.S. government contracts, its cautious outlook has sparked concerns for Indian IT services firms.
On a positive note, Indian markets have witnessed robust Foreign Portfolio Investor (FPI) inflows in two of the last three trading sessions. Bagga pointed out that if this trend continues and domestic capital on the sidelines is deployed, Indian markets could potentially resume their upward trajectory and touch new record highs.
However, he cautioned that the uncertainty surrounding April 2 remains difficult to hedge, with global risks still evolving. “For now, we remain cautiously optimistic but wary of surprises on April 2. Risks are being priced in, but uncertainty remains a challenge for investors in what could become a ‘lose-lose’ trade war scenario,” Bagga added.
— ANI
