Indian Markets Open Lower Amid Tariff Tensions and IT Sector Weakness

Indian stock markets experienced downward pressure on Friday. This was primarily due to ongoing tariff tensions initiated by US President Donald Trump and disappointing financial results from the IT sector.

The benchmark Nifty 50 index began the day at 25,255.50, reflecting a decrease of 99.75 points, or 0.39 percent. The BSE Sensex also declined, dropping by 369.52 points, or 0.44 percent, to open at 82,820.76.

Market analysts attributed the weak start to renewed concerns about tariffs and lackluster corporate earnings, particularly within the IT sector. Ajay Bagga, a banking and market expert, noted the return of tariff-related anxieties. He highlighted the impact of increased tariffs on Brazil and the subdued performance of US stock futures following news of tariffs on Canada.

Bagga further pointed out that President Trump had indicated potential "blanket tariffs" of 15 to 20 percent on countries without existing tariff agreements. He specifically mentioned India and the EU as significant US partners yet to reach such deals.

The recent underperformance of India's IT sector further contributed to the negative market sentiment. Bagga observed that the sector's weak performance would likely continue, given the underwhelming results and guidance provided thus far.

With a base tariff of 10 percent already factored in, along with higher sectoral tariffs, the market is now seeking greater clarity in the absence of fresh market drivers.

Among the broader market indices on the NSE, all segments opened in negative territory. The Nifty 100 declined by 0.24 percent, the Nifty Midcap 100 by 0.10 percent, and the Nifty Smallcap by 0.23 percent.

Sectorally, most major indices experienced losses, with the exception of Nifty FMCG, Nifty Pharma, and Nifty PSU Bank. The Nifty IT sector was the worst performer, falling by 1.67 percent, followed by Nifty Media, which was down by 1.43 percent. The Nifty Auto also saw a decline of 0.33 percent.

Akshay Chinchalkar, Head of Research at Axis Securities, commented on the market's performance, noting the uncertainty caused by tariff concerns. He highlighted key technical levels for the Nifty, including a critical support level and a short-term hurdle.

Several companies were scheduled to release their quarterly financial results on this day, including Avenue Supermarts, Elecon Engineering Company, and others.

In contrast to the Indian market, the broader Asian markets showed a generally positive trend, with the exception of Japan's Nikkei 225. Hong Kong's Hang Seng index, Taiwan's Weighted index, Singapore's Straits Times, and South Korea's KOSPI all saw gains.