The Indian benchmark indices started the week on a negative note, influenced by weak global signals following rising geopolitical trade tensions due to the US administration’s talk of imposing additional tariffs on European nations. Sensex dropped by 449 points, or 0.54%, reaching 83,120, while Nifty fell by 148 points, or 0.58%, to 25,546 by 9:30 am. Broadcap indices like Nifty Midcap 100 and Nifty Smallcap 100 also experienced declines, with losses of 0.42% and 0.54% respectively.
Except for Nifty FMCG, all sectors were in the red zone, with IT, media, and oil and gas sectors being the major losers, each declining by over 1%. Market experts mentioned that immediate support levels were at 25,600 and 25,450, while resistance levels stood at 25,875, followed by 26,000 and 26,100. Analysts anticipated volatile trading days ahead due to heightened geopolitical risks, citing concerns over US President Donald Trump’s trade policies impacting global economic growth.
Asia-Pacific markets witnessed losses during the morning session, with China’s economic growth slowing to its weakest pace in nearly three years in the fourth quarter due to a decline in domestic demand. In Asian markets, China’s Shanghai index rose by 0.13%, Shenzhen dropped by 0.01%, Japan’s Nikkei fell by 1.05%, Hong Kong’s Hang Seng Index lost 1%, and South Korea’s Kospi gained 0.85%. US markets closed in the red in the previous session, with Nasdaq down by 0.06%, S&P 500 losing 0.06%, and Dow declining by 0.17%.
Foreign institutional investors (FIIs) sold net equities worth Rs 4,346 crore on January 16, while domestic institutional investors (DIIs) bought equities worth Rs 3,935 crore on the same day.
