Synopsis : Indian equities opened weak on Wednesday amid fresh global tariff threats and caution ahead of key earnings. Tech stocks like Infosys and HCL Tech led the declines, while volatility is expected ahead of US Fed minutes and TCS Q1 results.
Indian benchmark indices opened on a muted note Wednesday, reflecting investor caution amid geopolitical tensions and trade uncertainty. The BSE Sensex fell 60.05 points to 83,652.46, while the NSE Nifty 50 slipped 15.65 points to 25,506.85, pressured by losses in major tech and auto stocks.
Nifty Bank also opened in the red, down 0.20% at 57,143, mirroring the subdued sentiment.
Global Trade Fears in Focus
Market jitters are stemming from U.S. President Donald Trump’s announcement of a potential 10% tariff on BRICS nations, including India, and a 100% tariff threat for countries supporting an alternative to the U.S. dollar. Brazil's President Lula has already issued a strong response, adding to geopolitical friction.
“Traders should brace for volatility,” warned Prashanth Tapse, Senior VP at Mehta Equities, citing the July 9 FOMC minutes and TCS Q1 results on July 10 as key upcoming triggers.
Early Gainers and Losers
Top Gainers: Asian Paints, PowerGrid, BEL, and Maruti showed early strength.
Top Losers: Infosys, HCL Tech, Tata Motors, Axis Bank, and Kotak Mahindra Bank pulled benchmarks lower.
Asian Markets Update
Japan’s Nikkei: +0.33%
Kospi (South Korea): Flat
Kosdaq: +0.29%
Australia’s ASX 200: -0.26%
Traders across Asia remain wary ahead of Trump’s August 1 tariff deadline.
Market Strategy: Technical View
According to Shrikant Chouhan of Kotak Securities, markets may see further upside if Nifty crosses 25,550 and Sensex surpasses 83,500. However, a break below 25,300/83,000 could signal more downside, dragging indices toward 25,175 or even 82,600.
Broader Perspective: Q1 Earnings Key
“Midcaps are expected to maintain earnings momentum,” said Dr. VK Vijayakumar of Geojit Financial Services, while large caps may gradually improve. Sectors like banking and cement could deliver positive surprises later in the fiscal.
Disclaimer : This article is intended for informational purposes only and does not constitute financial advice. Investors are advised to consult certified professionals before making investment decisions.
