Indian equity markets opened the week on a weak note Monday, slipping in early trade despite strong domestic macroeconomic indicators, including robust GDP and GST collection data. Global concerns—especially fresh trade tensions sparked by former U.S. President Donald Trump’s decision to double tariffs on steel and aluminium—dampened investor sentiment.
The Nifty 50 opened at 24,669.70, down 81 points or 0.33%, while the BSE Sensex began the day at 81,214.42, falling 236.59 points or 0.29%. Both indices continued to trade lower through the morning session.
The latest headwind came from Trump’s announcement of 50% tariffs on steel and aluminium imports starting July 4, reigniting fears of a global trade war and casting a shadow over strong domestic economic cues.
Ajay Bagga, banking and market expert, told ANI, “Asian markets are down as tariff tantrums and tax uncertainty rule sentiments. Despite India’s stellar March-quarter GDP performance, the global weakness is keeping Indian markets under pressure.”
He added that although expectations of a rate cut by the RBI’s Monetary Policy Committee later this week had buoyed hopes, external shocks like the U.S. tariff hike and the ongoing Russia-Ukraine conflict were keeping investors cautious.
Sectoral indices on the National Stock Exchange (NSE) reflected broad-based selling pressure. All major indices, except Nifty FMCG and Nifty PSU Bank, opened in the red. Nifty IT was the biggest loser, falling 1.28%, followed by Nifty Bank, which dropped 0.5%. Nifty Smallcap and Midcap indices also opened lower, down 0.43% and 0.10%, respectively.
Sunil Gurjar, SEBI-registered analyst and founder of Alphamojo Financial Services, noted, “The market is currently trading between a resistance and support zone. A breakout could determine future direction. Despite strong fundamentals, global sentiment is clearly driving short-term market moves.”
Weakness was also visible across major Asian indices. Japan’s Nikkei 225 fell by over 1.4%, Hong Kong’s Hang Seng dropped 2.3%, Taiwan’s Weighted Index lost 1.61%, and Indonesia’s Jakarta Composite declined 1.44%.
While India’s economic data remains encouraging, the day’s trade illustrates how global developments continue to outweigh domestic positives, at least in the short term.
