The Indian equity markets opened lower today as lacklustre global cues and increasing concerns over global trade tussles weigh on investors. As per the trading in the GIFT Nifty in the pre-market session, the Nifty was expected to see a gap-down open of over 175 points, while analysts expected the session to be marked by hesitance of investors and a vulnerability to global volatility.

Market Open

Sensex plummets over 700 pts, Nifty slips below 22,350; IT, and metal stocks into bloodbath. This tepid opening follows concerns related to global cues and a lack of robust domestic triggers to sustain market optimism. By pre-open figures, the Sensex was already crashing 400 points with the other below 22,450. IndusInd, M&M dropped up to 4% as the market opened. 

Global Cues

Asian Markets: Asian stocks are broadly down as sell-offs on Wall Street continue after a slew of disappointing earnings stock from Nvidia Corp, new U.S. tariffs, and mixed economic data. The Nikkei in Japan pulled back to a 5-month low as chip stocks trailed the slump in Nvidia.

US Market Reaction: The S&P 500 and Nasdaq fell sharply Thursday, pressured by a drop in Nvidia’s shares following its quarterly report.

Global Trade Threat: South Korean stocks are down more than 3 percent on fears that a global trade war is now a distinct possibility, thanks to United States President Donald Trump’s tariffs on imports from major allies.

Domestic Indicators

Investor Participation: Weak domestic investor participation is expected, which could add to downward pressure on the market due to muting of buying.

GDP Growth Estimates: The GDP growth estimates of India will be on the radar of market participants. INDIA GDP Growth Estimate 6.4% Vs Previous 8.2%

Market Valuation: The ratio of market capitalisation to GDP in India indicates that Indian stocks are still “very expensive” — although it’s a little out of sync now due to the recent decline.

Key Events

Bond Central Launch: Seeks to improve transparency, accessibility and efficiency in India’s fixed-income market

Power Finance Corporation (PFC): PFC secured ₹40,000 crores renewable energy contract.

UltraTech’s Cables Entry: UltraTech Cement’s entry into the cables and wire business has hurt the stock values of incumbent players.

Commodities

Prices: Oil prices are softening and on track for their first monthly drop since November under pressure from worries about global economic growth and fuel demand.

Rupee Volatility: Rupee may open weak and stay weak, depending on intervention and flare up in market dynamics.

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