Benchmark stock market indices opened lower, extending their losses this month led by a decline in IT and metal sector stocks.
The S&P BSE Sensex tanked 378.29 points to 75,812.17, while the NSE Nifty50 was down by 92.40 points to 22,999.80 as of 9:45 AM.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the market sentiment has turned weak.
“Sustained FPI selling (Rs 69000 crores in January, so far) is impacting the market. Despite DII buying of Rs 67000 crores in January, so far, the market is under pressure. A major concern is that President Trump is coming up with new threats like the 25 % tariff on Columbia for its refusal to take back deported illegal immigrants. The threatened 25% tariff on Canada and Mexico might be implemented from February 1st onwards. Therefore, will Trump walk his talk on other threats including tariffs on China and other countries, is a question that is being asked in economic and market circles now. These concerns are weighing on the markets,” he added.
This 6-day week is likely to be highly volatile with other major events like the Fed decision and the Budget in India. The market is looking forward to fiscal stimulus through income tax cuts in the Budget. If the expectations are met, there can be a relief rally in the market. But if a rally is to sustain, we need data indicating growth and earnings revival.
