Indian equity markets opened lower on Monday, weighed down by global trade concerns and mixed signals from international markets, with metal stocks leading the decline following U.S. President Trump’s announcement of potential new steel tariffs.
The Sensex opened at 77,789.30 compared to its previous close of 77,860.19 and is currently trading at 77,409.34, down by 450.85 points or 0.58 per cent. Similarly, the Nifty opened at 23,559.95 against its previous close of 23,543.80 and is now at 23,416.15, losing 143.80 points or 0.61 per cent.
“The Dow Jones tumbled after weaker-than-expected jobs data, while attention is on whether BJP’s victory in the Delhi Assembly Elections will lift Nifty today. However, intraday gains might face resistance due to the ongoing US-China trade tensions,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. He added that “Nifty’s key resistance is at 24,039, aligned with the 200 DMA.”
Metal stocks bore the brunt of selling pressure, with Tata Steel falling 3.30 per cent and JSW Steel dropping 2.70 per cent, following President Trump’s announcement about new steel and aluminum tariffs. Other major losers included Power Grid (-2.64 per cent), Cipla (-2.57 per cent), and Hindalco (-2.43 per cent).
“Wall Street ended sharply lower on Friday, with benchmark Treasury yields climbing in response to a mixed U.S. payrolls report, disappointing consumer sentiment data, and renewed trade war concerns,” noted Ameya Ranadive, Senior Technical Analyst at StoxBox. “Given the global market dynamics, Indian equity benchmarks are anticipated to remain volatile, influenced by the global trade anxieties stemming from Trump’s tariff decisions.”
Consumer goods companies showed resilience, with Britannia Industries emerging as the top gainer, rising 2.43 per cent. Other gainers included Bharti Airtel (+0.93 per cent), HUL (+0.92 per cent), Tata Consumer (+0.64 per cent), and Nestlé India (+0.49 per cent).
“The Delhi election results, particularly the emphatic nature of the BJP win, though positive from the market perspective, are unlikely to trigger a sustained rally in the market,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “With the dollar index above 108 and the 10-year US bond yield above 4.4 per cent, FIIs will continue to sell the rally, restricting any potential upside.”
Foreign institutional investors (FIIs) continued their selling streak, offloading equities worth ₹470 crore on February 7, while domestic institutional investors (DIIs) provided some support by purchasing equities worth ₹454 crore.
“The benchmark Sensex and Nifty indices opened negative on Feb 10, following GIFT Nifty trends indicating a loss of 60 points for the broader index,” said Hardik Matalia, Derivative analyst at Choice Broking. “After a negative opening, Nifty can find support at 23,500 followed by 23,400 and 23,300.”
VLA Ambala, Co-Founder of Stock Market Today, highlighted the recent RBI policy impact: “On Friday, the RBI slashed the repo rate by 25 bps, bringing it down from 6.50 per cent to 6.25 per cent to ease retail inflation and boost economic growth. This move marks the first rate cut in 5 years and could benefit sectors such as real estate, banking, and automobiles.”
The market sentiment remained cautious ahead of crucial inflation data from both India and the US, scheduled for release on February 12th. Technical analysts maintain a watchful stance, with Shrikant Chouhan, Head of Equity Research at Kotak Securities, noting: “The market situation is positive in the medium term, but a fresh uptrend is likely only after 23,700/78200 is crossed. On the downside, below 23,500/77600, the market may extend the correction wave to 23,400-23,375.”
The Reserve Bank of India has projected GDP growth for FY26 at 6.7 per cent and expects inflation to ease to 4.2 per cent in the same period. The central bank’s decision to maintain a neutral monetary policy stance comes during a phase marked by inflation and rising global uncertainties.
