Markets Fall On Weak Global Cues; Infosys, Banking Stocks Under Pressure

Mumbai: Indian equity benchmark indices Sensex and Nifty opened lower on Tuesday due to weak trends in the US markets and heavy selling in Infosys shares. The 30-share BSE Sensex dropped by 346.23 points or 0.47 per cent, reaching 73,768.94 in the morning session. Meanwhile, the Nifty of NSE declined 124.80 points or 0.56 per cent, settling at 22,335.50.

Major Losers and Gainers

Several blue-chip stocks contributed to the market downturn. Among the 30 Sensex companies, IndusInd Bank, Infosys, Mahindra & Mahindra, Zomato, Bajaj Finserv, UltraTech Cement, Tech Mahindra, Adani Ports, Tata Steel, Kotak Mahindra Bank, and HDFC Bank were the top losers. On the other hand, Sun Pharmaceuticals, ICICI Bank, Nestle India, Bharti Airtel, NTPC, and Titan registered gains, providing some relief to the markets.

Impact of US Market Trends

The slump in Indian equities was influenced by global market trends. US stocks faced significant losses on Monday, with the S&P 500 and Nasdaq declining by 2.6 per cent and 4 per cent, respectively. This reaction was largely attributed to concerns over former US President Donald Trump’s shifting tariff policies and the uncertainty it has created in the financial markets.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, "President Trump's flip-flop tariff policy and the high uncertainty that it has triggered have started impacting US stock markets. The market's response to Trump's tariffs and the possibility of a US recession by the year-end is evident."

Global Market Weakness

Asian markets mirrored the weak sentiment, with key indices in Tokyo, Shanghai, Hong Kong, and Seoul trading in the negative zone. The global oil benchmark, Brent crude, remained stable at USD 69.28 per barrel, offering no significant boost to investor confidence.

US Recession Concerns

According to Devarsh Vakil, Head of Prime Research at HDFC Securities, US stocks fell sharply due to ongoing tariff conflicts and rising concerns about a potential federal government shutdown. Additionally, weaker consumer sentiment and sluggish consumer spending have added to fears of an economic downturn in the US.

FII and DII Activity

Foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth Rs 485.41 crore on Monday. However, Domestic Institutional Investors (DIIs) provided some support, purchasing equities worth Rs 263.51 crore, according to exchange data.

Market Performance on Monday

On Monday, the Sensex closed 217.41 points lower at 74,115.17, while the Nifty declined by 92.20 points, settling at 22,460.30. The bearish trend extended into Tuesday, with global market uncertainties weighing heavily on investor sentiment.

(With PTI Inputs)