Indian benchmark indices Nifty and Sensex opened with modest gains on Wednesday, hovering near the flatline as global sentiment remained cautious. At 10.00 am, the Sensex declined by 48.03 points, or 0.06 per cent, to 74,054.29, while the Nifty fell by 24 points, or 0.11 per cent, to 22,473.90. Of the total shares, 1,752 advanced, 1,309 declined, and 155 remained unchanged.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the Indian market’s resilience. He remarked, “Even in this negative backdrop, the Indian equity market is showing some resilience. The fact that despite the sharp correction in US markets yesterday, Nifty recovered about 150 points from the lows and closed in positive territory, is an indication of the recent resilience and outperformance of the Indian market.”
According to Vijayakumar, this trend is backed by strong fundamentals, with leading indicators pointing to a recovery in growth and a decrease in inflation. India’s macroeconomic indicators have improved significantly compared to a month ago, providing support to the markets.
Broader Market
In the broader market, midcap and smallcap indices erased their early gains and slipped to flat levels, while sectoral indices showed a mixed trend. IT stocks took the brunt of the selling, as global brokerage Morgan Stanley expressed caution due to macroeconomic uncertainties and evolving technology trends.
Experts believe the Indian equity markets are likely to remain volatile amid ongoing trade tensions. The US administration’s aggressive tariff policies, particularly its trade dispute with Canada, have contributed to increased economic uncertainty.
Meanwhile, on Tuesday, US President Donald Trump unexpectedly reversed his earlier decision to double tariffs on Canadian steel and aluminium to 50 per cent. This change came just hours after Canada itself backtracked from plans to impose a 25 per cent surcharge on electricity exports.
Concerns over a potential federal government shutdown and escalating tariff conflicts have intensified fears of a US recession. Weak consumer sentiment, slowing spending, and trade risks continue to weigh on US economic growth. In the previous session, Wall Street extended its losses.
The S&P 500 closed 9.3 per cent below its all-time high, marking a decline of more than 3.4 per cent over the past two sessions, its biggest drop since early August. Overall, the Dow Jones Industrial Average fell 1.14 per cent, the S&P 500 lost 0.76 per cent, and the Nasdaq Composite dropped 0.18 per cent.
