Market Opens in Red Amid Trade Talk Uncertainties

Today, the Indian equity benchmark indices, Nifty50 and BSE Sensex, opened in the red. Nifty50 was observed below 25,100, while BSE Sensex fell over 200 points. By 9:18 AM, Nifty50 was trading at 25,095.20, marking a decrease of 55 points or 0.22%. Similarly, BSE Sensex stood at 82,291.51, down by 209 points or 0.25%.

Market experts suggest that the ongoing uncertainty in trade talks could keep the markets in a consolidative phase.

Expert Insights on Market Trends

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, commented, "Nifty has been showing a weak trend, primarily due to the underperformance of IT stocks. This trend may continue, especially after FIIs were significant sellers in the cash market last Friday. Notably, banking and financial sectors are outperforming even in this weak market, and this trend might persist."

He added, "The market has already factored in the NIM compression for banking stocks expected in Q1 results. Therefore, any dips in banking stocks could present buying opportunities."

Global Market Influences

US equities saw a decline on Friday, with Meta Platforms leading the downturn, as trade concerns escalated among investors. The situation worsened after Donald Trump announced intentions to impose a 35% duty on Canadian imports starting next month.

Asian markets also fell on Monday, affected by dropping US futures, following recent US tariff threats that introduced market uncertainty. However, the impact was limited as investors considered the presidential rhetoric possibly temporary.

Meanwhile, gold prices reached a three-week high as investors turned to safe-haven assets after Trump's announcement of potential 30% tariffs on imports from the European Union and Mexico.

Oil prices experienced slight gains on Monday, continuing from Friday's 2% increase, as traders evaluated the potential effects of US sanctions on Russia on global supply.

Disclaimer: The recommendations and views on the stock market and other asset classes provided by experts are their own and do not represent the views of The Times of India.